
Class . 



SK(:^1 



M^iA 



CopiyrightN", 



COPYRIGHT DEPOSrc 



MANN'S 

AGRICULTURAL 

BOOKKEEPING INSTRUCTOR 

Designed for Self-Instruction and School Room Use 



J. D. MANN 

GALENA, OHIO 



Graduate of Ohio H'esleyan University School of Business, 
Delaware, Ohio 1902 




COPYRIGHT 1914 BY 
J . D . MANN 



MAIL ORDERS WILL BE FILLED PROMPTLY BY THE AUTHOR 






• • 
• • 


PREFACE 


• • 
• • 




iHE object in presenting this volume to the farmer and student of agricul- 
''^1 ture, is to teach the important points of theory and practice of book- 
.^;j J keeping to such an extent, that it may be possible to keep a record of bus- 
^"^^ iness transactions in such a way, that by an examination of the books 
the true condition of the business may be known at once. 

Since farming has become a science, the successful farmer has become, both a 
scientific and business man. 

It is just as important for a farmer to keep a record of his business transactions 
as it is for any other business man. 

After making a careful study of the several systems of bookkeeping, -we have 
failed to find a system that meets the requirements of the man who is engaged in 
general farming. This fact has prompted the author to present to the modern far- 
mer a system of keeping farm accounts that will meet his requirements and at the 
same time eliminate the unnecessary technicalities of bookkeeping which he will 
never use in keeping farm accounts. For this reason we have employed transac- 
tions in this set of books that will be familiar to the ordinary farmer and at the same 
time be such that they will illustrate the fundamental principles of bookkeeping. 

We have also endeavored to make the system as simple as possible and yet so 
complete that it will meet the requirements of any one who is engaged in general or 
specialized farming. 

For the farmer who is engaged in the mercantile business, such as selling fence, 
fertilizer, farm implements, etc., we have employed transactions that will show how 
such entries should be made. 

It is not necessary to be a college graduate in order to be able to master this sys- 
tem. Indeed it has been our foremost aim to put the work in such a way that anyone 
possessing a moderate education will be able to master it without difficulty. 

By studying the definitions and rules, by inspecting carefully the entries made 
in the journal and ledger, and by foUowingthe instructions for making such entries, 
no difficulty should be experienced in recording transactions and making entries 
of the same in a satisfactory manner. Of course it will be necessary to use judg- 
ment in comparing the transactions made in this book with actual transactions which 
you will make. 

The transactions used in this set of instructions are real transactions taken from 
our own books, which cover a period of ten years. 

We have been engaged in both general and specialized farming and stock rais- 
ing, also have handled several lines of merchandise during the period from which 
these transactions have been taken. We have taken great care to select all of the 
different kinds of transactions that a farmer is likely to make. 

We have long felt the need of a system of keeping farm accounts which would 
be complete, yet simple enough that a man possessing a moderate education and a 
little good common sense would be able tc keep a record of his business transactions 
in an intelligent manner. This fact has prompted the author to put this book before 
the public. Our greatest desire is that it will meet the desired requirements and that 
it will be a help to the farmers in keeping a record of their business. 

©CI.A362371 



Preliminary Remarks 



To the Farmer: 

In presenting this liocik tn tlic farmer we feel that we must make sume intrnductory remarks, 
I'irst we wish tn im|)ress ujxin VdU the importance of keeping a recurd of vour business trans- 
actions. It is both interesting and l)eneficial to kn.ow just what ynur income and expenses are. 
Man}- farmers ha\e paid tlie same bill twice because they failed tn keep a record of their Inisi- 
ness. The larger part of many estates have been consumed b}- lawyer's fees and cotirt expenses 
liecause the deceased, wdiile li\ing, failed tn keeji a recnrd nf his business in a businesslike wa_\-. 

This system is imt as com])licaled as it nia_\ at hrst appear. ^'l]U are not expected to master 
the whole system at once. In fact it ma\- ne\er be necessary for you to master it all. 

In this system we ha\e endeaxured tn employ transactinns that will cn\er ever^■ phase nf 
farm business, taken from a commercial standpoint. We dn nnt expect that any one farmer will 
make all of the transactions recorded in this bock, but in order to co\er the needs of all farmers 
it has been necessary to use a large \arietv of transactions. 

It is not necessary for you to sttuh' this system fnr several nmnths before c(.immencing tn 
keep your own accounts. In fact _\'nu can 1)egin the da_\' ynu recei\-e this book. Howexer. it will 
I'e necessary fc^r you to gi\e it snme stuch' and }'ou slmuld dexote a few^ hours Inoking it oyer be- 
fi-re you attempt to keeji ynur own accounts. It is best to read the dehnitions. rules, and instruc- 
tions a few times and Innk o\er the Ixiok ennugh to become familiar with it, then you are ready- 
to begin keeping books for yourself. The instructions are so arranged that ynu ha\'e tn learn tn 
record but one transaction at a time. \'nu may learn tn make niie or two to-da}- and perhaps an- 
I'ther toniorrw, that depends enlireU- upnn thi.' numlier of transactions you actuall}- make. 

The Journal is the pi-incipal book that \(ia will use. ^'nu will \ er}- seldnm use the Ledger 
unless your business is very extensive. The majnrity nf your entries will be in the journal, only. 
Tn case y'ou do any business on credit it will be necessarv- tn npen ])ersonal accnunts in the ledger 

It is not necessary to use the I'arm Reciird Hook at all. The transactions can l)e recnrded in 
the journal at once. The a\'erage farmer will nnt make nmre than two nr three transactions each 
day, and it will re(.|uire but a few minutes each evening tn make the entries in the journal. The 
Farm Record Book is used when \nu make se\era' transactinns and wish tn write them down until 
you have a chance to record them in the jnurnal. An\- cheap talilet nr paper pad will dn fi r this 
purpose. 

\\'hen vou wish tn recnrd a ti-ansactinn in the jnurnal, turn tn The h'arm Recnrd ISnnk and 
find a transactinn like the one ynu wish tn record, then Innk in the journal and se how that trans- 
action was recorded, and recnrd \-nur transaction in the same vvay. In the explanations to en- 
tries in the journal and ledger we have referred tn the I'ule gn\erning each entry. It is best tn Innk 
up the rules referred tn. 

If y(.iu wish to take an inventory at the time you begin bonkkeeping, turn to the hrst part of 
the "Farm Record Book" and see how the .\utlior has taken the inventory, then proceed to 
take yours in the same way. and then turn to the first page of the Journal and see how the .\uthor 
has made the entries for the in\entnry. and then make your entries in the same way. 

To the Teacher: 

When the book is used in the school room, the pupils should be recpiired to learn the delini- 
tions and rules and study the explanations before attempting to make any entries. Lach pupd 
sh(juld ha\e blank paper ruled the same as the ji urnal and ledger. ISegin with the in\entory and 
have the pupils make the same entries that are made in this journal, .\fler the inventory has been 
disposed of take up each transaction. I la\e the )iu]iil gi\e the rule for each entry made, .\fter the 
journal has been completed take up the ledger in the same way, beginning with the inventory and 
then each entry found in Sundry Personal Account Column in the Journal. .Vfter all of the en- 
tries have been disposed of close the accounts in tlu Ledger, referring to Closing the Ledger. 

Page Three 



How to Study This Book Without a Teacher 



1st — Study the Definitions. 

2nd — Study the Rules for Making Debits and 
Credits. 

3rd — Study Explanations to Columns in 
Journal. 

4th — Turn to the Farm Record Book. On 
the first page, will be found the inventory, 
taken Jan. 1st, 1911. Look over it carefully. 
Then turn to the first page of the Journal and 
see how the entries have been made. Use youi 
own name instead of Proprietor, when you 
keep books for yourself. 

5th — After the Inventory has been disposed 
of take up each transaction, noticing how eacli 
debit and credit has been made. 

6th — Read the Instructions for Making 
Debits and Credits in Journal, and How to 
Study This Journal. 

7th — In connectiiin witii each entry in the 
Journal, read Explanation to Debits and 
Credits in Journal. This gives the amount of 
each debit and credit and the rule srovernine 



the entry. It is well to read the rules referred 
to until you become familiar with them. 

Sth — W'c have given some explanations to 
some of the transactions. These explanations 
will he found under Helpful Explanations to 
Some of the Most Difficult Transactions. I'nn- 
sult this subject freely. 

9th — After all oi the transactions lia\e been 
disposed of, stud}- Explanation of Ledger, and 
How to Post to the Ledger. 

10th — K\ery aninunt found in Sundry Per- 
sonal Account column in the journal must be 
posted to the ledger. 

11th — .\fter all of the amounts have been 
posted to the ledger, study Closing the Ledger. 

12th — When an amount is posted from tlie 
journal to the ledger, always place the jour- 
nal page in J. P. column in the ledger, and 
place the ledger page in L. P. column in the 
journal. This is done for convenience in re- 
ferring to a transaction from journal to ledger, 
or from ledger to journal. 

A ledger is usually closed at the end of each 
year. It can be closed at any time the pro- 
prietor sees fit. 



Definitions 



1. BOOKKEEPING is the art of recording 
mercantile transactions in a regular and sys- 
tematic manner, and keeping accounts of the 
same in such a way, that a man may know 
by an inspection of his books, the true con- 
dition of his business. There are two kinds 
of bookkeeping — Single Entry and Doul)Ie 
Entry. 

2. SINGLE ENTRY BOOKKEEPINK is 

the method by which the amount of a simple 
transaction is entered in only one account. 
Personal Accounts and Cash Account are the 
only accounts kept in this method. 

3. DOUBLE ENTRY BOOKKEEPING 

is the method by which tlie amount of a simple 
transaction must l)e entered under at least two 
accounts. Once on the Debit side and once 
on the Credit side. 

4. BOOKKEEPER. A bookkeeper is a 
person who has charge of keeping accounts. 
It is the duty of a bookkeeper to make a com- 
plete record of business transactions. This 
record consists of the date on which a transac- 
tion was made, a statement as to whether you 
bought or sold, the name of the person or per- 
sons of whom you bought or to whom sold, 
the terms on which you bought or sold, the 
name of the article or articles bought or sold, 
the number or amount of articles bought or 
sold, the price paid or received, and the wliole 
amount of the bill. 

Page Four 



5. KEEPING FARM ACCOUNTS is the 

act of rec(jrding business transactions made by 
a farmer. 

6. A FARM RECORD BOOK is a book in 
which a farmer keeps a detailed description of 
his business transactions in the order of which 
they take place. This book corresponds to 
what some bookkeepers call a Blotter, Day 
Piook, or Waste Book. A common tablet or 
blank book will answer the purpose very well. 

7. A JOURNAL is a book in which Debits 
and Credits are arranged in con\-enient form 
to ])e posted to the Ledger. 

8. A LEDGER is a book into which ac- 
counts are carried from a Journal. 

9. A BUSINESS TRANSACTION is an 

action between at least two persons in ex- 
changing values. 

10. AN ACCOUNT is a collection of a par- 
ticular kind or class of ^•alues in the form of 
Del)its and Credits, the names of the persons 
to the transaction, date, and price of tlie ar- 
ticle. An account has two sides — a Debit Side 
and a Credit Side. The Debit side is the Left 
Hand side. The Credit side is the right hand 
side. 

11. TO DEBIT AN ACCOUNT is to place 
an amount on the Left Hand Side or Debit 
Side of the account. 



12. TO CREDIT AN ACCOUNT is tu 

place an amount un the Credit Side nr Right 
Hand Side i,f the account. 

13. CASH. By the term Cash, we mean 
currency, bank checks, bank drafts, nmney or- 
ders, certificates of deposit. &c. 

14. INTEREST is a premium paid for the 
use of money. 

15. A BANK CHECK is a written instru- 
ment authorizing a certain bank to pay a speci- 
fied sum of money to a certain person. It is 
necessary for a person to make a deposit in a 
bank before issuing checks on that bank. 

16. FREIGHT is a charge made for the 
transportation of goods, usually by railroads 
or ship. 

17. DRAYAGE is a charge made for the 
transportation of goods, usually by team and 
wagon, or by motor truck. The difference be- 
tween freight and drayage is that the tormei 
term is used by railroads and ship line com- 
panies, while the latter term is used by dray 
companies or by any one engaged in carrying 
goods short distances, such as from a depot 
to some place in the same town. 

18. DISCOUNT is an allowance given for 
the payment of a bill on or before a specified 
time. For instance, some merchants sell goods 
on 20 or 30 days' time, but if paid before 10 
days they will allow a discount of 1 per cent. 
When a note is paid before it is due, the holder 
will sometimes give a discount from the face 
of the note. 

19. A NOTE is a person's written promise 
to a pay a certain sum of money at a specified 
time. Notes are Negotiable or Non-Negoti- 
able. 

20. A NEGOTIABLE NOTE is one that 
can lie briught or sold. A Negotiable Note 
has the words (or order) or (or bearer) in- 
serted after the name of the person to whom 
the money is to be paid. If (or order) is in- 
serted, the holder of the note must sign his 
name on the back of the note before he parts 
with it. If (or bearer) is inserted, any one can 
present the note for payment. 

21. A NON-NEGOTIABLE NOTE is one 

that can ni it 1)C biiuglit i ir sold. 

22. A CONTRACT is an agreement be- 
tween, at least two persons, in which each per- 
son binds himself to do some act, and each ac- 
quires a right to what the other promises. 

23. A BANK DEPOSIT is money de- 
posited in a bank for safekeeping until the de- 
positor calls for it. Money deposited in a bank 
can be drawn out at any time. If the deposit 
is made subject to check, the depositor can 
issue checks on that bank until the amount of 



the checks issued equals the amount deposited. 

24. A CERTIFICATE OF DEPOSIT is a 

written instrument, issued by a bank, certify- 
ing that a certain person has deposited a speci- 
fied sum of money in that bank. 

25. A TIME CERTIFICATE OF DE- 
POSIT is written for a specified length of time 
and usually bears interest. 

26. INSURANCE is a contract by wdiich 
one party engages for a certain amount, to 
pay a loss which another may sustain. 

27. FIRE INSURANCE is a contract by 
which one party agrees, for a certain amount, 
to pay a specified sum to another person for 
damages done by fire or lightning. 

28. LIFE INSURANCE is a contract by 
which one party agrees, for a certain amount, 
to pay a specified sum to another person at 
the death of a third person. 

29. A CORPORATION is a society hav- 
ing the capacity of transacting business as one 
person. 

30. STOCK is the money or goods em- 
ployed in carrying on some enterprise, such 
as manufacturing, insurance companies, bank- 
ing, oil and gas companies, &c. Stock is di- 
vided into shares. 

31. AN INVENTORY is a written account 

of the particulars of articles with the value or 
price annexed. 

32. A DIVIDEND is a part or share of the 
income earned by a company, divided among 
the stockholders of the company. Each stock- 
holder receives a dividend in proportion to the 
number of shares of stock he owns. 

33. A REBATE is a deduction from an 
amiiunt given for a specified reason. 

34. A DRAFT is an order from one person 
to another, demanding the payment of money 
to a third person. There are three persons 
mentioned in a draft. The Drawer, Drawee, 
and Payee. 

35. THE DRAWER is the person who is- 
sues the draft. 

36. THE DRAWEE is the person who is 
ordered to pay the draft. 

37. THE PAYEE is the person to wdiom 
the draft is made payable. 

38. DRAFTS are either Sight Drafts or 
Time Drafts. 

39. A SIGHT DRAFT is one that must be 
paid when presented for payment to the 
Drawee. 

Page Five 



40. A TIME DRAFT is one that is tc ht- 
paid at some future s]iecified time. 

41. AN ORDER i'- a re(|ucst fnmi (jne pcr- 
siiii til aniither. requirinu; the pavmeut nf 
money to a tliird person. The difference be- 
tween a Draft and an Order is that tlie furnier 
is a flemand while the latter is a i-ecpiest. 

42. A POST OFFICE MONEY ORDER 

is a lucinex" urdir issued li\' a I'nst Office. 

43. AN EXPRESS MONEY ORDER is a 

mone\ urdcr issued hy an Kxpi'ess (.'nmpan}-. 

44. TO BUY ON ACCOUNT i- t.. buy on 

time nr in other weirds tn l>u\' on ci'edit. 

45. TO SELL ON ACCOUNT is t.. sell on 
time I ir in other words [<> sell nu credit. 

46. SUNDRY PERSONAL ACCOUNTS: 

In this .'\ecount are kept the amounts of all 
Personal Accounts. In this Set of Books thi^ 
account is l<ept in the Journal. All amounts 
found in this accdunt are pnsted tn the Led;_;"er. 

47. EXPENSE ACCOUNT is an account in 
which are kejit all amounts paid out to carry 
on the business after the Inisiness is in pro- 
gress. The amount in\'ested in the business 
at the betjinnini; is not ))Ut in Expense Ac- 
count. In this set of books. Expense Account 
is kept in the Journal. The accnunt is alw:n- 
Debited and ne\ er Credited. 

48. LABOR ACCOUNT is an account 
under which are kept all amnunts paid nut fur 
labor on the farm. In this set ■ >f bnoks this 
account is kept in the Journal. This account 
is always Debited and ne\-er Credited. The 
amounts you recei\'e for labm- can be kept in 
Income Account nr o|)en a Labor Account in 
the led.i.;er. 

49. INCOME ACCOUNT is an account in 
wdiich are ke|>t all amounts recei\'ed for ar- 
ticles sold from the farm and for services ren- 
dered to other persons. This account is kei>t in 
the Journal. .Ml entries made in this account 
arc Credit entries. 

50. CASH ACCOUNT is an account in 
which are kept all amriunts of t'ash i-ecei\ed 
nr parted with. .\11 amounts receix ed are kept 
on the Debit ni Left Hand side. .\11 anmunts 
paid out are kept on the Credit nr Right Hand 
.side. This account is kept in the Journal. 
Some bookkeepers kee]) their Cash Account 
in a Cash Book, while others kee|) it in a 
Ledger. 

51. A PROPRIETOR ACCOUNT is an 

account in which is kept the \'alue of all i)ro|)- 
erty, both Real and I'ersonal. that the nwner 
of a business furnishes to carry r)n that busi- 
ness; also all amounts the proprietor owes the 
l)iisiness, such as notes outstanding;-. Personal 
.-\ccounts jiayable, (.1'C. 

52. A PERSONAL ACCOUNT is an ac- 
count in which are kept amounts another |)er- 
Page Six 



son owes \'ou on account and the anmunts }'ou 
owe another person nn accnunt. 

53. A REAL ESTATE ACCOUNT is an 

account in which is kejit an account of all 
Real Estate owned by a proprietor. 

54. A BANK ACCOUNT is an account in 
which are kepit all tile amounts deposited in a 
certain bank suljject to check. .\lso the 
amounts of all checks draw^n on that bank. .\11 
amounts deposited are kept on the Debit or 
Left Hand side, and the amounts of checks 
drawn are ki-pt on the Credit or Right Hand 
side. 

55. INTEREST ACCOUNT is an accunt 
in which are kept all amoiuits |)aid or recei\cd 
for the use i if mone_\'. 

56. DISCOUNT ACCOUNT is an account 
in which are kept all amnunts paid nr recei\ed 
fni" discnuntini;- bills nr notes nf any kind. 

57. LOSS AND GAIN ACCOUNT is an 

accnunt in which are ke])t all amounts of 
Losses or Oains sustained by a business. This 
account is Debited for all Losses and Credited 
for all Gains sustained. This account is kept 
in a Ledger and is nnt opened until the hooks 
are closed unless there is an unexpected Loss 
or Gain, in such a case the account is opened 
at the time the unexpected loss or gain is sus- 
tained. 

58. BILLS RECEIVABLE ACCOUNT is 

an accnunt in which are kept the amounts of 
nther ])erson"s notes payable to you. This 
account is Debited when a note is received and 
Credited when it is ]jarted with. It is also 
Credited, when partial payments are made, for 
the auKiunt nf the pa\nient. 

59. BILLS PAYABLE ACCOUNT is an 

accnunt in which are kept the amounts of your 
notes, ])ayable to other parties. This account 
is Credited when you issue a note. It is Debited 
when you redeem or pay your note. It is also 
Debited when }"ou make a partial payment, for 
the aninunt of the pa\-ment. 

60. A SPECULATIVE ACCOUNT is an 

account in which is kept a record of ]M-o]3erty. 
such as merchandise or any projierty that is 
bnught and snld fnr speculati(m. In this set, 
h'ence ,\ccnunt. Real Estate .\ccnunt, and 
L(|uipment .\ccnunt, are Speculative Accounts. 

6L EQUIPMENT ACCOUNT is an ac- 
cnunt in which are ke])t the value of all ef|uip- 
nient fnr carrxing on the farm business, h'or 
instance, the \ alue of machinery, live stock, 
f:irm prnducts, household goods, iSrc, which 
\du nwn \yhen voti open your books. Do not 
Debit or Credit tliis account for any of the 
abiwe articles that are bought between the 
time of o|)ening and closing the books. .See 
Rule .'v=^. 

62. MERCHANDISE is any article that is 
bought and snld in trade, usually fnr the pur- 
pnse nf making a proht. 



Rules for Making Debits and Credits 

Cash Account 



1. Debit Cash Account for the amount of 
cash (in hand when liooks are npened. 

2. Debit Cash Accnuiit when cash is re- 
ceived. 

3. Credit Casli Accimnt when cash is paid 
(lUt or parted witli. 

4. Credit Cash Account for the amount of 
cash on hand when books are closed. ( ( )nh' 
when this account is to be balanced.) 

Real Estate Account 

3. Debit Real Estate .Account for the mar- 
ket value of all real estate owned when Ijooks 
are opened. 

6. Debit Real Estate .Account for the mar- 
ket \-alue of all real estate of which you become 
the owner. 

7. Credit Real Estate Account for the 
amount received for any real estate disposed of. 

8. Credit Real Estate Account for market 
value of all real estate owned when books are 
closed. 

Bills Receivable Account 

9. Debit 1 Sills Receivable .Account for the 
amount of other persons' notes you own wlien 
books are opened. 

10. Debit Bills Receivable .Account when 
vou receive another person's note. 

I .. ' ' V T ». ■- «■ . t " > i - < ; 

11. Credit Rills Receivable .Account when 
von part with another ])erson's note. 

12. Credit Bills Receivable Account when 
another person makes a partial payment on his 
note, for the amount of the payment. Never 
Credit this account for interest and ne\'er for 
more than the face of the note. 

13. Credit Bills Receivable Account for the 
amount of all other persons' notes you own 
when books are closed, if you wish to balance 
the account. 

Persons or Corporations 

14. Debit Persons or Corpiirations for the 
amount they owe you when books are opened. 

13. Delut Persons or Cor])orations when 
you furnish them values on account. 

16. Debit Persons or Corporations when 
other persons furnish them values for you on 
account. 



17. Debit Persons or Corporations when 
■sou furnish \alues to another person for them 
on account. 

18. 1 )el)it Persons or Corporations when 
you receive another person's order on them. 

Rules for Making Debits and Credits 

1'). De])it Persons or Corporations when 
their checks, drafts, or orders on other persons 
or corporations are dishftnored and returned to 
you. 

20. Credit Persons or Corporations for the 
amount vou owe them (jn account when books 
are opened. 

21. Credit IVrsons or Corporations when 
they furnish you values on account, and when 
they furnish 'Other parties values for you on 
account. 

22. Credit Persons or Corporations when 
you issue an order or check on them and when 
vou part with orders on them. 

23. Credit Persons or Corporations when 
you cancel what they owe you on account. 

Bills Payable Account 

24. Debit Bills Payable Account when you 
pav your notes outstanding. 

23. Debit Bills Payable Account when you 
make a partial payment on your note outstand- 
ing, alwavs for the amount of the payment. 

26. Debit Bills Payable Account for the 
face of the notes you have outstanding at the 
time the books are closed, if the account is to 
be balanced. 

27. Credit Bills Payable for the face of all 
notes you ha\-e outstanding when books are 
opened. 

28. Credit Bills Payable Account when you 
issue a note. 

Bank 

29. Debit a bank for the amount you have 
in that bank, subject to check when books are 
opened. 

30. Debit a bank when you make a deposit 
subject to check. 

31. Debit a bank when another person 
makes a deposit in that bank in your favor, 
subject to check. 

32. Credit a bank when you issue a check 
on that bank. 

Page Seven 



?)5. Credit a hank when that bank returns 
a vvnrthless check tn ynu, which you depusited 
sul)ject to check. 

34. Credit a hank for the amount you ha\c 
in tliat bank subject to check wlien liooks are 
chjsed. (Only A\hcn this account is to be lial- 
anced.) 

Expense Account 

33. Debit Expense Account for all amounts 
paid for articles used to promote the farmint^- 
business, such as labor, repairs, produce, live 
stock, machinery, groceries, tile, spraying ma- 
terials, freight, grass seed, fruit trees, binder 
twine, butter, paint, coal, fence, postage 
stamps, stationery, telephone rent, fire and life 
insurance, newspapers, ta.xes, gifts, ]ireacher's 
salary, baling hay, hauling milk, shearing 
sheep, making cider, keeping of li\'e stock 
owned by Companies, amounts in\ested in 
Stock Companies. &c. 

Speculative Account 

,^6. Debit a Speculative Accnunl fur the 
amount of merchandise on hand when inxoice 
is taken at the opening of the books. 

,i7. Del)it a Speculati\e Acccjunt when 
freight is paid nii merchandise. 

38. Debit a S];eculati\'e .\ccount wlun 
merchandise is received. 

39. Deljit a S|)eculative Account when 
drayage is paid (,n merchandise. 

40. Debit a Speculative Account when la- 
bor is required in caring for merchandise or in 
case of contract work when lalxir is required. 

41. Debit a Speculative Account when you 
gi\c a rebate to a customer who has bought 
merchandise. 

42. Credit a Sijeculatixe .\ccount when 
merchandise is parted with. 

43. Credit a Speculative Account for the 
value of merchandise on hand when books are 
closed. 

Discount Account 

44. Debit Discount Account when you gixe 
a discount to another person. 

43. Credit Discount Account when you re- 
ceive a discount from another person. 

Interest Account 

46. Debit Interest -\ccount when you ]xiy 
interest to another person. 

47. Credit Interest Account when you re- 
ceive interest from another person. 



Labor Account 

48. Del)it Labor Account for all values 
gi\-en to laborers for doing general farm work, 
such as raising and taking care of crops, car- 
ing for li\e stock, doing re|)air work on the 
farm, and housework. Such items as filing 
saws, baling hay, shoeing horses, hauling milk 
to the creamery, threshing grain and grass 
seed, making cider. &:c., should not be put in 
Labor Account, but in Expense Account only. 

Income Account 

4'X Credit Income .\ccount when articles 
are sold from the farm. 

30. Credit Income Account when you re- 
ceive \alues for rendering services to other per- 
sons. 

31. Credit Income Account when you re- 
ceive a dividend from some Stock Company in 
\\hich you own stock. 

Equipment Account 

32. Debit Equipment .Account for the \-alue 
of the machinery, live stock, hay, grain, seed, 
household goods, &c., you have on hand when 
h( )oks are opened. 

33. Credit Equipment .\ccount for the 
\alue of articles mentioned in rule 32, which 
\(iu ha\-c on hand when Ixioks are closed. 

Proprietor Account 

34. Debit I'ro])rietor Account for the 
amount the Proprietor owes when the l)Ooks 
are opened, and value of property owned when 
liooks are closed. 

33. Credit Proprietor Account for the value 
of all the property the Proprietor puts into the 
lousiness when the books are opened, and for 
the amount of his deljts when liooks art 
closed. 

Loss and Gain Account 

36. Debit Loss and Gain y\.ccount when an 
une-xpected loss is sustained. 

37. Debit Loss and Gain Account for losses 
sustained by a Speculative Account. 

38. Credit Loss and Gain Account when a 
S]:)eculati\e Account shows a Credit Balance 
when the Ijooks are closed. 

39. Credit Loss and Gain Account when an 
unexpected .gain is received. 



Page Eight 



Farm Record Book 



Inventory, Jan. 1st, 1911. 
On opening my books Jan. Isl, I'Jll. my Inventory is 

Cash on hand - 

I own 150 acres of land worth $80.00 per acre 

I have a Note on Albert IMonroe for 

Ralph Taylor owes me, on account 

Andrew Hamlin owes me, on account 

I have on hand 800 bushels of Corn @ 50c per bushel 

100 shocks Corn @ 75c per shock 

600 shocks Fodder (a) 10c per shock 

20 tons Timothy Ha>' (a: $12.00 per ton 

5 tons Mixed Hay @ $11.00 per ton 

5 tons Clover Hay @ $10.00 per ton 

200 bushels Wheat @ $1.00 per bushel 

200 bushels Oats @ 40c per bushel 

5 bushels Clover Seed @ $8.00 per bushel 

4 bushels Timothy Seed (S) $3.00 per bushel 

40 bushels Potatoes, $1.00 per bushel 

6 Horses @ $150 00 

1 share in Percheron Horse Co 

8 Cattle @ $35.00 

5 Hogs @ $25.00 each 

20 Hogs @ $10.00 each 

40 Sheep @ $4.00 each 

100 Chickens @ 30c each 

1 Grain Drill worth 

1 Self-Binder worth 

1 Play Loader worth 

1 Side-Delivery Rake worth 

1 Hay Tedder worth 

1 Mowing Machine worth 

2 Breaking Plows @ $10.00 

1 Disc Harrow worth 

1 Spring Tooth Harrow worth 



loll. 



Proprietor's investment 

I owe Frank Adams, on account 

Note, outstanding, favor T. A. Hood, dated Dec. 31st. 
1910, due in 2 years and bearing interest at 6% per 
annum 

Proprietor's delfts 



. $ 1,000 00 
. 12,000 00 

80 00 
100 00 

10 00 



400 00 

75 00 

60 00 

240 00 

55 00 

50 00 

200 00 

80 00 

40 00 

12 00 

40 00 

900 00 

200 00 

280 00 

125 00 

200 00 

160 00 

30 00 

50 00 

30 00 

50 00 

35 00 

15 00 

20 00 

20 00 

15 00 

10 00 



-$ 5,392 00 
16,582 00 

$ 50 00 



100 00 

$ 150 00 



Jan. 1st — Deposited in Dan\-ille Bank, sub- 
ject to check, cash, $600.00. 

Jan. 3rd — Paid James Baker, for groceries, 
cash, $2.00. 

Jan. 7th — Sold Charles left'erson, 2 l)ushels 
clover seed @ $8.00 per' bushel. $16.00. re- 
ceived his check on Riverside Bank, $16.00. 

Jan. 9th — Sold John Madison, on account, 
20 lbs. beef @ 5c per pound, $1.00. 

Jan. nth— Bought of The Shelby Clay Co., 
on account, 100 rod 4-inch tile (a 25c per rod 
and 50 rod 6-inch tile @ 30c per rod, $40.00. 

Jan. 13th — Frank Adams paid The Shelb> 
Clay Co., for me, on account, cash, $5.00. 

Jan. 15th — Albert Monroe paid his note by 
giving me his certificate of deposit on Albany 
Bank. $80.00. 



Jan. 17th — Drew check on Danvile Bank, 
favor Lewis Jackson, to pay lodge dues for 
Luke Harrison, on account, $5.00. 

Jan. 19th — Bought of The Ohio Fence Co., 
as follows, terms 2-20-60: One set fence 
stretchers, $10.00; 500 rod 11-48 fence, @ 40c 
per rod ; 300 rod 10-46 fence, @ 35c per road ; 
100 rod 20-60 fence, @ 50c per rod; 100 rod 
16-48 fence @ 45c per rod; $410.00. 

Jan. 21st — Deposited in Danvile Bank, sub- 
ject to check, Albert Monroe's Certificate of 
Deposit on .Albany Bank, $80.00. 

Jan. 23rd — Paid cash for money order to 
send to Jupiter Farmer for advertising my 
Thoroughbred Poland China Hogs, six months, 
$10.00. '" 

Jan. 25th— Paid Henry Tyler (freight agent) 
for freight on fence, cash, $12.00. 

Page Nine 



Jan. 27th — Gilbert F'olk hauled one load of 
fence fnim Danville for me; he charged $4.80; 
he t(Kik 10 rod l(i-4S fence, (cv 48c per rod, 
84.80. 

Feb. 1st — Ralph Taylor paid his account in 
full h\- .^i\ing me his check on (Ireen's I'.ank. 
SI 00.00.' 

Feb. 3rd — Deposited in Danville IJank, suli- 
ject to check, Ralph Taylor's check on Green's 
"';ank, $100.00; Charles Jefferson's check ><u 
Riverside Bank, $16.00; $116.00. 

Feb. 5th — Drew check on Danville i'.ank fa- 
vor N(iah T<"illmore for one ton coal, for the 
Al. 1',. Church, >m accnunt, $3.00. 

Feb. 7th — I'aid ( )hio Fence Cn. fnr invoice 
dated 1-10-11; face fif invoice $410.00; 2 per 
cent discount on face of invoice $8.20; sent 
them my check on Danville I'.ank, $401.80. 

Feb. 9th— -Sold C. Z. Hess nf Lancaster, 
Penn.. one Thoroughbred Poland China Mog; 
received X. Y. Draft, $35.00. 

Feb. nth— Paid Peter Pierce for .500 letter- 
lieads $2.00. 2.^0 envelopes $2.00; $4.00, 

Feb. 12 — Bought of David Lincoln, on my 
note for 8 months at 6 per cent interest per 
annum. 100 sheep (W $4.00 per head, $400.00. 

Feb. 15th— Sold lacol) Lackson, on account, 
100 l.ushels wheat (7i 80c per bushel, $80.00. 

Feb. 20th— Sold Cyrus Grant, 200 bushels 
corn (Tt 73c per bushel, $150.00; received his 
check .m Danville Bank, $1.50.00. 

Feb. 22nd — Ga\e X(_iah Haves mv check on 
Danville I'.ank for cash. $20.00. 

Feb. 25th — Sold |<iseph Garfield, on acc<.unt. 
200 rod n-4S fence (7v 43c per rod, $86.00. 

March 1st — loseph (iarfield deposited cash 
in Dan\ille Bank, my favor, on account, $50.00. 

March 3rd — Paid Oliver Arthur cash for 
lielping Initcher, $1.00. 

March 5th — Paid f.evi Cleveland cash for Til- 
ing saws, $1.00. 

March 8th — Paid Grace I'.urr cash for doing 
liousework. 2 weeks (Ti $2.00 per week. $4.00. 

March 12th — Received of lacob Jackson, on 
account, cash, $50.00; his check on Alhanv 
I'.ank, $30,00; $80.00, 

March 15th — I'aid John Clinton cash for 
Lime Sulpur .Solution, 20 gallons (a 35c per 
gallon, $7.00. 

March 18th— Bought of David King, for 
cash, 2 l.ushels Timothy Seed frt $4.00 ])er 
Page Ten 



bushel ; 1 bushel Clover Seed, $10.00 ; $18.00. 
I did not ha\'e any cash with me so I gave him 
the check for $150.00 on Albany Bank which 
Cyrus Grant gave me, and he gave me $132.00 
in cash for change. 

March 20th — Robert Marshall worked for 
me one dav ; I ga\ e him for his labor, 1 bushel 
I'c.tatoes, worth $1.00. 

March 25th — Paid Siiringfield Nurserv cash 
for ,-() I'each Trees (7i_ 20c each. $10.00. 

March 28th — I lough of Ohio Supply Co., one 
1io.\ Prunes; paid cash for Express Money 
Order to send as payment for the Prunes, $4.00. 

April 1st — Paid Henry Tyler (freight agent) 
cash for freight on 20 gallons Lime-Sulfur So- 
lution shipped froni SiKer T^akes, ()., to Kil- 
l.uck, O., $1.00. 

April 3rd — Ga\ e Philip Clay my check on 
Dan\ille B.ank for ni\- share of keeping Com- 
pan\- Morse for one year, $15.00. 

April 5th — Paid Bell Telephone Co. cash 
for three months' 1io,x rent, $3.00; tolls, $1.00; 
$4.00. 

April 9th — Sold Joseph Clayton, for cash, 
.^0 bushels Oats (ci) 30c per bushel, $15.00; 
100 rod 10-46 fence (a' 38c per rod, $38.00; 
$53.00. 

April 13th — Oscar Black paid me for pastur- 
ing 5 Colts, 2 months, (cv $1.00 per month for 
eacli Colt; he gave me cash, $3.00; his check 
on Green's Bank, $7.00; $10.00. 

April 15th — Paid Le\i Fish, cash, for shoe- 
ing horses, $2.00. 

April 17th— Sold Herbert Blaine. 100 rod 
11-48 fence (g) 43c per rod, $43.00; 100 rod 
10-46 fence @ 38c per rod, $38.00 ; 50 rod 20-60 
fence (a) 33c per rod, $26.50; 50 rod 16-48 
fence ® 48c per rod, $24.00; $131.50. Re- 
ceived his check on Danville I'ank, $131.50. 

April 21st — Deposited in Danville Bank, 
sul)ject to check, C, Z, Hess's N. Y. Draft, 
$35.00; Jacob Johnson's check, $30.00; Oscar 
Black's check, '$7.00; Herbert Blaine's check, 
$131..^0; $203.. ^0. 

May 1st — Llaving decided that 1 had more 
money in Danville Bank, subject to check, 
than was necessary to carry on my business, 
J drew a check on Danville Bank in favor of 
Danville P.ank for $500.00 and received a Time 
Certificate of Deposit, bearing interest at the 
rate of 4 per cent per annum. 

May 2nd — Drew check on Danville JSank, 
favor Hiram Wheeler, to pay for one suit of 
clothes for Frank .\dams. on account, $30.00. 

May 5th — Paid Fdwin Wilson cash for 
shearing 50 head of Sheep (a' 8c jier head, $4.00, 



May 9th — loseph (larfield returned 30 rod 
11-48 fence @ 43c per rod, $21.50. 

May 12th — Andi-cw iiamlin L;a\e me his 
check on .Mhany Hank, en account, $10.00. 

May 15th— Snld Kin- I'.ro.s. 100 md 10-46 
fence (a 43c per rod erected, $43.00; recei\-ed 
his check on Danville Bank, $43.00. 1 paid 
L. Kile ca.sh for hclpinL:; me erect his fence. 
$2.00. 

May 17th — lacoh (ackson haled hav for me. 
on account, l.<tons (Ti $2.00 per ton, .S30.00. 

May 21st- S. lid W ni. Allen \? Idus May (ft 
$20.00 per ton ; received his check on Alhanv 
r.ank, $300.00. 

May 25th — Depusited in Danville P.ank, 
subject to check, Andrew llamlin's check, 
$10.00; King- Bros", check, $43.00; A\'m. Allen's 
check. $300.00; cash (currency), $200.00; 
$333.00. 

June 1st — Boui^ht of Cilhert T^olk. on ac- 
count. 100 llis. Ilinder Twine (7i 8c per lli., 

$s.oo. 

June 3rd — Drew check on Danxdlle Bank, 
favor Danville Bank. f. ir Cash, $.30.00. 

June 5th — My Creamery Statement for Jtme 
is as follows; 'lOOO lbs. Milk, average test, 3 
per cent ; amount of Butter, 50 lbs., price per 
lb. 30c. Butter used during month. $3.00 ; paid 
for hauling Milk, $1.00. 

June 7th — I let T. D. Anderson have Cash, 
without note or interest, $100.00. 

June 12th — I stored 100 bushel Wheat in 
New York Milling Co. ; I am to receive 40 lbs. 
flour for every Inishel of Wheat stored. Wheat 
is worth $1.00 ])er Inishel. hdour is worth 2"j 
cents per 11). I brought 1000 lbs. V\nw home. 

June 16th-— Sold 1 Ib.g to C. A. Arnold on 
his note fur 6 nicjnths (ii 10 per cent interest, 
per annum, $25.00. 

June 25th — The check which .\ndrew Ham- 
lin ga\ e me. May 12th, was icturned on ac- 
c.iunt of no funds'; $10.00. 

July 1st — Paid Joseph Bacon Cash for in- 
suring $2800.00 worth of Buildings, Live Stock, 
and Grain, against damage by Fire or Light- 
ning, (a 1 per cent for a term of three years; 
$28^00. 

July 3rd — I'.nugln of John Clintcm, f(ir 
Cash, 3 gallons Paint (ti $2.00 per gallon, 
$10.00. 

July 6th — Paid Dr. Bailey, Cash, for render- 
ing medical ser\-ices to Jacob Jackson, on ac- 
count, $30.00. 



July 10th I ). E. Baker ^vorked for me one 
<la\' I <u acci lunt. $2.00. 

July 20th I returned Andrew Hamlin's 
Check In him; he gave me Cash, $10.00. 

July 25th— i;.,ught of Xoah l-illmnre 10 t..n 
Coal ((L .$2.30 per ton. I let him have .^0 Inishel 
Corn (ci 30c per bushel. $23.00. 

July 26th— I'Hiught of 1. D. Balboa for my 
( )rder (in Luke I l.irris.ui, 10 bushel Oats (Fu 40c 
per Imshel. ,S4.00. 

July 27th— Sold W. B. Barton for his Check 
un Danville l'.;nik, 1 \'eal Calf, $10.00. 

July 28th — 11. T\. Boone gave me Cash for 
thc Check which I received from \\'. B. Bar- 
ten. $10.00. 

Aug. 1st — Mrs. B. C. Bragg cleaned houst 
f,,r me 3 days (cy $1.00 per day, $5.00; I paid 
her Cash. $4.00. and let her have I bushel 
Onions worth $1.00; $3.00. 

Aug. 6th — Drew Check on Danxille Bank, 
favor S. P. Brown, for threshing 400 bushels 
W heat ® 4c per bushel, $16.00'; 500 bushers 
< )ats (a) 2c per bushel, $10.00; 25 bushels Tim- 
othy Seed (Tc 20c per bushel. $5.00; $31.00. 

Aug. 8th — 1 bought 2 shares of Galena Oil 
& (ias Stock @ $k).00 per share, $100.00; I 
paid Cash, $10.00; the rest to be paid on de- 
mand. 

Aug. 15th — J(.seph ( larfield came to settle in 
full for the fence wdiich he bought of men on 
account; he said the fence was not as repre- 
sented so 1 gave him a Rebate of $2.00 ; he gave 
me Cash, $;12.50. 

Aug. 18th— The Cialena Oil & Gas Co. called 
nn its Stockholders to pay 50 per cent of the 
Stock subscribed. In my case that would be 
.$50.00; T gave Cash, $50.00. 

Aug. 20th— Sold D. C. Bryant for his Order 
on 1. C. Buell, 50 rod 11-48 Fence (a 38c per 

nid! $1').00. 

Sept. 1st — Si lid to P.. F. Cabot for his Check 
(in .\rlington Bank. 20 Fat Hogs, total weight 
4000 lbs.'. (7i (k per lb,; ,$240.00'; 

Sept. 5th — liought of Universal Rooting Co., 
for my Check on Danville Bank. 20 squares 
Roofing (a $3.00 per square; $60.00. 

Sept. 10th — Paid Oliver Arthur cash for cut- 
ting Cnrn, 200 shocks ra 5c per shock. $10.00. 

Sept. 15th — Paid PL G. Conway Cash for 
making twd barrels Cider (a 50c per barrel, 

$1.00. ' 

Sept. 18th — U. C. Davis rented my Grain 
Drill 1(1 sdw 40 acres ^^'heat (a 25c per acre. 

Page Eleven 



$10.00; he paid me liv giving me a Calf wortli 
$10.00. 

Sept. 25th— I traded Calves with W. B. Bar- 
ton, lie gave me S.rOO Cash, for my Calf was 
worth $5.00 more than liis. 

Sept. 27th — Deposited in Danville Bank, 
sul.jcct to Check, B. F. Cabot's Check. $240.00, 

Sept. 28th — Paid Frank Adams Cash on ac- 
count, $10.00. 

Sept. 30th — An attempt was made to burg- 
larize the Dan\ille Bank on the night of Sept. 
25th. A reward was oiTered for the capture of 
the guilty party. I succeeded in capturing the 
guilty person and the Danville Bank credited 
my account for $300.00. 

Oct. 1st — I hired H. O. Franklin to work for 
me nne month for $25.00. 

Oct. 1st — I, being a little suspicious in refer- 
ence to the iMnancial Standing of the Danville 
Bank, decided to draw some of my money out 
of that Bank. I drew a check on Danville Bank 
in favor of Danville Bank ; the Cashier gave me 
cash $500.00. I deposited cash in People's 
Bank and received a Certificate of Deposit, 
I)earing 4 per cent interest per annum, $500.00. 

Oct. 3rd — I paid on Preacher's Salarv, Cash, 
$10.00, gave him 10 bushels Corn worth .^Oc 
per bushel, $5.00; $15.00. 

Oct. 4th — Let H. O. Franklin ha-s'e. on ac- 
count, 200 lbs. Flour @ ly.z per lb., $5.00. 

Oct. 5th— Sold Edward Earlv, for Cash, 10 
head Cattle for $200.00. 

Oct. 10th — Paid H. O. FrauKlin, Cash, on 
account, $10.00. 

Oct. 12th— :\ly note for $400.00, given Fell. 
12th. I'Ul, liearing interest at the rate of 6 
per cent per annum, in favor of David Lincoln, 
falls due to-day. I paid him Cash $100.00. 
gave him my Check on Danville Bank, $300.00 ; 
$400.00. I credited his Account for the inter- 
est, which was $16.00. 

Oct. 18th — Paid li. G. Conwav Cash for 
hulling 20 bushels Clover Seed @ $1.00 per 
bushel, $20.00. 

Oct. 20th — Some one Ijruke into my Smoke- 
house and stole meat worth $5.00. 

Oct. 21st — Paid Dr. Baily cash for Medical 
Treatment rendered to H. O. P'ranklin, $5.00. 

Oct. 31st — 1 gave H. O. I-'ranklin credit for 
i.ne mr.nth's labor, $25.00. 

Oct. 31st— Paid H. O. Franklin Cash in full 
on account, $5.00. 
Page Twelve 



Nov. 1st — I received cash for driving one 
day for an agent who was selling machinery 
for The International Flarvester Co., $3.00. 

Nov. 5th — Paid The Practical Farmer cash 
f(ir one vear's subscription, $1.00. 

Nov. 10th — Sold C. B. Fremont for Cash, 
10 bushels Clover Seed (n) $10.00 per bushel, 
$100.00. 

Nov. 15th — 1 used fence on mv Farm, 100 
n.ds 11 -4S fence ra 43c per rod, $43.00. 

Nov. 20th — Borrowed of John Durling on 
my note due one year from date without in- 
terest. $100.00. 

Nov. 25th — I bought for Cash, a note of 
$100.00 drawn by T. P. Gage in favor of C. A. 
Gates ; received Discount, $5.00. 

Nov. 26th — Bought of Peter Pinder one Hog 
for $19.00; gave him the Order, which I have, 
drawn by D. C. Bryant, on J. C. Buell, $19.00. 

Nov. 28th — Sold at Green's Grocery 20 
dozen F.ggs (a) 20c per dozen, $4.00; took the 
whole amount in Groceries, $4.00. 

Nov. 29th — Some one stole 10 rods 16-48 
fence worth 45c per rod, $4.50. 

Nov. 30th— 1 snld the $500,00 Certificate of 
Deposit, which I hold on The People's Bank, 
to Henry AMlson for $495.00, which is $5.00 
less than the face of the Certificate. The 
Accrued Interest on this Certificate of Deposit 
is $3.33, making a Discount of $8.33. 

Dec. 1st — Oliver Arthur Imled Hay for me, 
20 tons (cv $1.75 per ton; $35.00. I let him 
have one Hog worth $20.00, gave him Check 
on Danville Bank, $10.00, and gave him Cash, 
$3.00, leaving balance (in account $2.00. 

Dec. 5th — I decided to cancel the account 
which I have against The M. E. Church. $3.00. 

Dec. 10th — I had to pay Peter Hanover's 
Note on wdiich I was Security. The face of the 
ndtc is $75.00. I paid Cash. 

Dec. 16th— C. A. Arnold paid Cash for his 
Note which was given June 16th, 1911 ; face of 
note is $25.00; interest, $1.25; $26.25. 

Dec. 20th — Drew Check on Danville Bank 
fa\-or Treasurer of Delaware Countv to pav 
Ta.xes, $150.00. 

Dec. 25th — Sold L. Moss for his Check on 
Green's Bank, 10 tons hay @, $18.00 per ton. 
$180.00. 

Dec. 25th — I'aid Cash for a Christmas pres- 
ent f.ir L. O. Goodman, $5.00, 

Dec. 26th — Received Cash of Philip Clay, 



mv share of Dividend on Percheron Horse C o. 
Stock, $30.00. 

Dec. 28th — Bought of J. C. Henry, 200 
bushels Corn @ 50c per bushel, $100.00; paid 
him with Note which I bought, made in fa -or 
of C. A. Gates ; $100.00. 

Dec. 31st — Prepaid my Note favor T. A. 
Hood and recci\'ed 5 per cent Discount on face 



of Note. Face of Note, $100.00 ; Interest, $6.00 ; 
Discount, $5.00: paid Cash, $101.00. 

Dec. 31st — ( iave Frank Adams. Cash, on Ac- 
count, $10.00. 

Dec. 31st — Sold 8 dozen Eggs at Jones' 
Grocery @ 25c per dozen, received $1.00 cash, 
and groceries amounting to $1.00. 

Dec. 31st — Sold 3 pounds of Butter to the 
huxter (a) 20c per pound, took groceries 
nmnunting to $2.00. and paid cash $1.00. 



Helpful Explanations to Some of the Most Difficult Transactions 



In this set of transactions Cash Account is 
debited or credited for Cash in all of its forms. 
See Definition 13. But when we say "Cash 
received or paid out" we mean Currency. If 
Cash in any of its other forms is received or 
parted with, they are also designated. 

In making debits and credits in the Journal 
for the inventory taken Jan. 1st, 1911. del)it 
Cash, Real Estate, Bills Receivable, Ralph 
Taylor, Andrew Hamlin and Equipment Ac- 
counts, because those persons and accounts 
owes the Proprietor the respective amounts 
for which they are debited. Credit Proprietor 
for $16,582.00 because that is his investment. 
Debit Proprietor for $150.00 becatise he owes 
that amount when the books are opened. 
Credit Frank Adams for $50.00 because the 
Proprietor owes him that amount. Credit 
Bills Payable for $100.00 because the Proprie- 
tor has a note outstanding for that amount. 

Jan. 15th — Debit Cash because a Certificate 
of Deposit is considered Cash. .See Def. 13. 

Jan. 17th — Lewis Jackson is the officer of the 
lodge to whom the dues were paid. 

Jan. 19th — Aside from regular farm work, 
some farmers carry some line of mercantile 
business. For instance, some farmers sell com- 
mercial fertilizer, roofing, fence, &c. This 
transaction is used for the purpose of showing 
how to handle accounts of this kind. The 
term "2-20-60" means if the account is paid 
within 20 days from the date of the invoice. 2 
per cent may be deducted from the face of the 
invoice. In case the purchaser does not take 
advantage of the cash discount, the bill be- 
comes due in 60 days from the date of invoice. 
and the purchaser must pay the full amount of 
the invoice. There are several more transac- 
tions to follow which will help to show how 
this account is handled. 

Jan. 25th — Fence Account is deljited for the 
amount paid for transportation. All expenses 
of this nature are considered part of the cost 
price. 

Jan. 27th — Debit Fence Account for all ex- 
penses for which the fence Inisiness is respon- 
sible. 



Feb. 1st — Dcljit Cash because bank checks 
are considered Cash. See Def. 13. 

Feb. 7th — The purchaser has taken ad\-an- 
tage of the Cash Discount. 

Feb. 9th — Cash is deliited because this draft 
is considered Cash. It is payable at sight. A 
time draft would not be Cash. It would be a 
Bill Payable or Bill Receivable after it has 
been accepted. 

Feb. 22nd — This transaction is often made 
by a person who has a Bank Account subject 
to check, but is in need of some currency and 
his location is such that it is not practical tor 
him to go to the bank for it. It is only an 
act of courtesy of one person to another. 

March 1st — Joseph Garfield owed me and in- 
stead of paying me, he deposited it in the bank 
in my favor. 

March 3rd — Expense and Labor Accounts 
are each debited. See Rules 35 and 48. 

March 5th — Debit Expense only, for this 
wciuld not be general farm work. 

March 8th — Housework should Ijc handled 
the same as outside work, unless the proprie- 
tor -wishes to keep it separate. 

March 15th — Debit Expense because this 
material was used on the farm. If I had 
bought it to re-sell, I would have opened an 
account for Spraj'ing jNIaterial. 

April 3rd — You will notice by the invoice 
that I own some Percheron Horse Stock. This 
is what I have to pay towards keeping him. 

May 1st — .Ml Certificates of Deposit are con- 
sidered Cash and are payable at the bank which 
issues them whenever presented. Banks do 
not generally pa}" interest on Time Certificates 
of Deposit if they are presented for payment 
before maturity. 

May 15th — This transaction is divided and 
entered in the Journal as two transactions in 
order to simplify it. 

Page Thirteen 



June 3rd — This transaction shows hnw to i^et 
ni(]nev on your rianl< Account. 



by L;i\ini; me an order on J. C. lUiell, therefore 
J. C. Ikiell became indelited to me. 



June 5th — For convenience this transaction 
is di\-ided and entered in the Journal as two 
separate transactii nis. 

June 7th — This is simply lending money on 
acci lunt. 

June 12th — Many farmers store Wheat at a 
mill and L^et tlour whenever they wish. Chari^e 
the mill for the \alue of wheat stored and 
credit it for the \alue of flour received. Some 
millini; companies allow a certain amount of 
flour regardless of value. 

June 25th — Andrew flamlin overdrew his 
bank account, therefore he must be debited, 
and Danville Hank credited, because he was 
credited when he gave it to me, and the Han- 
\ille ISank was debited when 1 de])osited it. 

July 20th — .Andrew Hamlin redeemed his 
worthless check, theref<ire he should be 
credited. 

July 26th — See definition 41. 

July 28th — This transaction is a \ery com- 
mon one. It does not necessarily need to l)e 
entered in the Journal, but it is best to do so 
in order to ha\ e a record of the disjiosal of the 
check. 

Aug. 8th — When shares of stock in a stock 
company are subscribed for, the company is- 
suing the stocks should be credited. Debit the 
com])any when juiyments are made on the sub- 
scripti( m. 

Aug. 20th— In this case J. ( '. I'.uel owed I ). 
C. I'li-yant on account. D. ('. I'.ryant ])aid nu- 



Sept. 25th — This is simply a trade and I re- 
ceixed $.^.00 beside-- a Calf, therefore Income 
should 1ie credited. 

Oct. 1st — It is not necessary to make an en- 
try, foi- it is only an agreement between 11. 
( ). b^-anklin and mxself. He is debited when 
I furnish him values on account and he is 
credited at the end of the month for the amount 
he was to recei\-e per month for his labor. 

Oct. 1st — This transaction is di\'ided and 
entered in the Journal as two separate trans- 
actions. 

Oct. 12th — I decided to just pay the face of 
the Xote and credit Da\'id Lincoln for the in- 
terest. 

Oct. 20th — Xo (.-ntrx- need be made -when 
goods are stole which have not been inxoiced 
and charged to some speculatixe account. 

Nov. 15th — Fence .Account must Ije credited 
for the amount the fence would ha\e sold for 
to anotlier person. 

Nov. 25th — It is customary to allow a dis- 
count for cashing a note before it is due. 

Nov. 26th — This is the order 1 received from 
I). C. I'.ryant Aug. 20th. 

Nov. 29th — I-'ence .\ccount must be credited 
for the \ alue of fence stolen. Rule 42. l)ecausc 
it was charged to h'ence Account when it was 
receix ed. 

Dec. 10th— It is poor policy to sign a Note 
as security. It has made many a rich man 
])ennyless. 



Explanations to Columns in Journal 



1st — The first double column on the left hand 
side of the Journal is the Date Column. The 
Year, Month and Day on which a transaction 
is made should l>e kept in this column. Place 
the Year at the top of the column, the Month 
in the left hand side, and the Day in the right 
hand side. 

2nd — The ne.xt large double column to the 
right of the Date Column is a column in which 
are k'ept the names of the accounts to be 
Debited or Credited, also the ])articulars in ref- 
erence to the transaction. The names of the 
.\ccounts to be Debited or Credited should be 
])laced at the extreme left hand side of the 
column. The particulars in reference to the 
transaction should ne\er e.xtend to the lelt ol 
the fine verticle line that divides this column. 
The names of the accounts which are to be 
Debited should always be placed first. The 
Page Fourteen 



names of the accounts which ai'e to be Credited 
should be placed under the one that is Debited 
and the word (to) should precede the name of 
the acci lunt. 

3rd — The next small column to the right of 
the al)o\-e described is the Folio Column. In 
this column is ke])t the Ledger Page on which 
an account is fouml. The Ledger page is 
placed in this column when the account is 
jiosted to the Ledger. If the account that is 
to be Debited or Credited is one that is not to 
be posted to the Ledger, a mark (\') is m;ide 
instead of a I^edger page. 

4th — The next column to the right lif the 
Folio Column is the Sundry Personal Account 
Column. In this column are placed all the 
auKiunts that are to be posted to the Ledger 
which would be all of the accounts that does 
not ha\e a column in the Journal. 



5th — The next c(.ikimii to the riglit tif Sun- 
dry Personal Account Column is Expense Ac- 
count Column. In this column are kept all the 
amounts paid for expenses in keepino- up the 
farmino- business. See Rule 35. 



>lumn to tlie rit^ht of Ex- 
lumn is Labor Account 
Column. In this column are kept all amounts 
Y>aid for labor on the farm. See Rule 48. 



6th — The next c 
pense Account C 



7th — The next column to the rii^ht of Labor 



Account Column is Income Account Column. 
In this column are kept the amounts received 
for articles sold from the farm. See Rule 49, 
50 and 51. 

8th— 'i"hc la>l double column to the ri,L;hl is 
Cash Account Column. The Left Hand side 
of this column is the Debit Side. All amounts 
of Cash received are kept on this side. The 
Right Hand side of this column is the Credit 
Side. .\11 amounts o{ Cash parted with are 
kept on this side. 



Instructions for Making Debits and Credits in Journal 

All Credits and Debits are placed in Sundry Personal .-\ccounts Column except Expense, 
Labor, Income and Cash .\ccounts. These four accounts are provided with columns in the 
Tournal because transactions made by a farmer aiffect these accounts most frequently. This saves 
"time and labor of posting" to a Ledger. You can keep as many accounts in the Journal as you 
\\ish bv adding more columns. 

HOW TO STUDY THIS JOURNAL 

First turn to the Farm Piccord i'.nnk and read the Inventory, and then turn to the Journal 
and notice Carefully how the entries are made; also read the explanation given and read the Rules 
referred to. When vou Thoroughly understand the Inventory, study the first transaction, and so 
on until you have made a thorough study of the entire Journal. Pay no attention to the Ledger 
Page Column when making entries in the Journal. 

^^4^en you open a set of liooks, compare your transactions with the ones in this set. Look 
for a transaction that is identical in principle with your own transactions, then make your entries 
the same as they are made in this Journal. While the transactions made by you will not be identi- 
cal in words with the ones found in this set, they will be the same in principle. Great care has been 
taken to select transactions that will illustrate the underlying principles of bookkeeping and at the 
same time be familiar to the farmer who is engaged in general farming. 



EXPLANATIONS TO DEBITS AND CREDITS IN JOURNAL 

Cash for $1000.00; see rule 1. 
Real Estate for $12,000.00 ; rule 5. 
Bills Receivable for $80.00 ; rule 9. 
Ralph Tavlor for $100.00 ; rule 14. 
Andrew Hamlin for $10.00; Rule 14. 
Equipment for $3392.00; rule 52. 
Proprietor for $16,582.00; rule 55. 
Proprietor for $150.00; rule 54. 
Frank Adams for $50.00 ; rule 20. 
P.ils Pavable for $100.00 ; rule 27. 
Danville Bank for $600.00 ; rule 30. 
Cash hn- $600.00 ; rule 3. 
Expense for $2.00; rule 35. 
Cash for $2.00 ; rule 3. 
Cash for $16.00 ; rule 2. 
Income for $16.00; rule 49. 
John Madison for $1.00; rule 15. 
Income for $1.00; rule 49. 
Expense for $40.00; rule 35. 
Shelby Clav Co. for $40.00; rule 21. 
Shelby Clay Co. for $5.00; rule 16. 
Frank Adams for $5.00; rule 21. 
Cash for $80.00 ; rule 2. 
Bills Receivable for $80.00; rule II. 
Luke Harrison for $5.00; rule 17. 
Danville Bank for $5.00; rule 32. 
Fence Account for $410.00; rule 38. 
Ohio Fence Co. for $410.00; rule 21. 
Danville Bank for $80.00; rule 30. 
Cash for $80.00; rule 3. 



Jan. 


1st- 


-Debit 
Debit 
Debit 
Debit 
Debit 
Debit 
Credit 
F)ebit ■ 
Credit 
Credit 


Jan. 


1st- 


-Debit : 
Credit 


Jan. 


3rd- 


-Debit 
Credit 


Jan. 


7th~ 


-Debit 
Credit 


Jan. 


9th- 


-Debit 
Credit 


Jan. 


11th- 


-Debit 
Credit 


Jan. 


13th- 


-Debit 
Credit 


Jan. 


15th- 


-Debit 
Credit 


Jan. 


17th- 


--Debit 
Credit 


Jan. 


19th- 


-Debit 
Credit 


Jan. 


21st- 


-Debit 
Credit 



Page Fifteen 



Jan. 


23 rd- 


Jan. 


23th- 


Jan. 


27th- 


Feb. 


1st- 


Fel... 


3rd- 


Fel). 


.3th- 


Feb, 


7th- 


Feb, 


9th- 


Feb. 


11th- 


Feb. 


12th- 


Feb, 


l.^^th- 


Feb. 


20tn- 


Feb, 


22 nd- 


Feb, 


2.Mh- 


Mar, 


1st- 


Mar, 


3 rd- 


Mar, 


3th- 


Mar, 


Sth- 


Mar. 


12th- 


Mar, 


13th- 


Mar, 


18th- 


Mar, 


20th- 


Mar, 


23th- 


Mar. 


2Sth- 


April 


1st- 


.\pril 


3rd- 


April 


3 th- 


April 


9th- 


April 


13th- 


April 


13th- 


April 


17th- 


April 


2isv- 


May 


1st 


;e Sixteen 





-Debit Expense for $10.00; rule 33. 

Credit Cash for $10.00; rule 3, 
-Debit Fence Account for $12.00; rule 37. 

Credit Cash for $12.00; rule 3. 
-Debit Fence Account for $4.80; rule 39. 

Credit Fence Account for $4.80 ; rule 42. 
-Debit Cash for $100.00; ritle 2. 

Credit Ralph Taylor for $100.00; rule 21. 
-Debit Danville Bank for $116.00; rule 30. 

Credit Cash for $116.00; rule 3. 

Debit M. E. Church for $3.00; rule 15. 

Credit Danville Bank for $3.00; rule 32. 
-Debit Ohio Fence Co. for $410.00; rule 15. 

Credit Danville Bank for $401,80; rule 32, 

Credit Discount for $8.20; rule 43. 
-Debit Cash for $33.00; rule 2. 

Credit Income for $35.00 ; rule 49. 
-Debit Expense for $4.00; rule 35. 

Credit Cash for $4.00; rule 3. 
-Debit Expense for $400.00 ; rule 35. 

Credit Bills Pavable for $400.00 ; rule 28. 
-Debit Jacob Jackson for $80.00; rule 15. 

Credit "Income for $80.00; rule 49. 

Debit Cash for $150.00; rule 2. 

Credit Income for $1.30.00; rule 49. 
-Debit Cash for $20.00 ; rule 2. 

Credit Danville Bank for $20.00; rule 32. 
-Debit Joseph Garfield for $86.00; rule 15. 

Credit Fence Account for $86.00; rule 42. 
-Debit Danville Bank for $.30.00; rule 31. 

Credit Joseph Garfield for $50.00; rule 21. 
-Debit Expense and I^abor, each for $1.00; rules 35 and 48. 

Credit Cash for $1.00; rule 3. 
-Debit Expense for $1.00; rule 35. 

Credit Cash for $1.00; rule 3. 
-Debit Expense and Labor, each, for $4.00; rules 35 and 48. 

Credit Cash for $4.00; rule 3. 
-Debit Cash for $80.00; rule 2. 

Credit Jacob Jackson for $80.00; rule 21. 
-T>ebit Expen.se for $7.00 ; rule 35. 

Credit Cash for $7.00; rule 3. 
-Debit Expense for $18.00; rule 35. 

Credit Cash for $18.00; rule 3. 

Debit Expense and Labor, each, for $1.00; rules 35 and 48. 

Credit Income for $1.00; rule 49. 
-Debit Expense for $10.00; rule 35. 

Credit Cash for $10.00 ; rule 3. 
-Debit Expense for $4.00 ; rule 35. 

Credit Cash for $4.00 ; rule 3. 
-Debit Expense for $1.00; rule 35. 

Credit Cash for $1.00; rule 3. 
-Debit Expense for $15.00; rule 35. 

Credit Danville Bank for $15.00; rule 32. 
-Debit Expense for $4.00; rule 35. 

Credit Cash for $4.00; rule 3. 
-Debit Cash for $53.00; rule 2. 

Credit Income for $15.00; rule 49. 

Credit Fence Account for $38.00; rule 42. 
-Debit Cash for $10.00; rule 2. 

Credit Income for $10.00; rule 49. 
-Debit Expense for $2.00; rule 35. 

Credit Cash for $2.00 ; rule 3. 
-Debit Cash for $131.50; rule 2, 

Credit Fence Account for $131, .^0; rule 42. 

Debit Danville Bank for $203.50; rule 30. 

Credit Cash for $203.50; rule 3. 
-Debit Cash for $500.00; rule 2. 

Credit Danville T'.ank f. ir $500.00; rule 32. 



-Debit Frank Adams fnr $30.00; rule 17. 

Credit Danville Bank for $30.00; rule 32. 
-Debit Expense and Labor, each, for $4.00; rubs 33 and 48. 

Credit Cash for $4.00 ; rule 3. 
-I")ebit Fence Account for $21.50; rule 38. 

Credit Joseph Garfield for $21.50 ; rule 21. 
-Debit Cash for $10.00; rule 2. 

Credit Andrew Hamlin for $10.00; rule 21. 
-lOebit Cash for $43.00 ; rule 2. 

Credit Fence Account for $43.00; rule 42. 
-Debit Fence Account for $2.00; rule 40. 

Credit Cash for $2.00 ; rule 3. 
-Debit Expense for $30.00; rule 33. 

Credit Jacob Jackson for $30.00 ; rule 21. 
-Debit Cash for $300.00 ; rule 2. 

Credit Income for $300.00 ; rule 49. 
-Debit Danville Bank for $553.00; rule 30. 

Credit Cash for $553.00; rule 3. 
-Debit Expense for $8.00; rule 35. 

Credit Gilbert Polk for $8.00; rule 21. 
-Debit Cash for $50.00; rule 2. 

Credit Danville Bank for $50.00 ; rule 32. 
-Debit Cash for $10.00 ; rule 2. 

Debit Expense for $5.00 ; rule 35. 

Credit Income for $15.00; rule 49. 
-Debit Expense for $1.00; rule 35. 

Credit Cash for $1.00; rule 3. 
-Debit T. D. Anderson for $100.00; rule 15. 

Credit Cash for $100.00; rule 3. 
-Debit New York Millinq- Co. for $100.00; rule 15. 

Credit Income for $100.00 ; rule 49. 
-Debit Expense for $25.00; rule 35. 

Credit New York Millino- Co. for $25.00; rule 21. 
-Debit Bills Receivable for $25.00; rule 10. 

Credit Income for $25.00 ; rule 49. 
-Debit Andrew Flamlin for $10.00; rule 19. 

Credit Danville Bank for $10.00; rule 33. 
-Debit Expense for $28.00; rule 35. 

Credit Cash for $28.00 ; rule 3. 
-Debit Expense for $10.00; rule 35. 

Credit Cash for $10.00 ; rule 3. 
-Debit Jacob Jackson for $30.00; rule 17. 

Credit "Cash for $30.00; rule 3. 
-Debit Expense and Labor, each, fur $2.00; rules 35 and 48. 

Credit D. E. Baker for $2.00; rule 21. 
-Debit Cash for $10.00; rule 2. 

Credit Andrew Hamlin for $10.00; rule 21. 
-Debit Expense for $25.00; rule 3?. 

Credit Income for $25.00 ; rule 49. 
-Debit Expense for $4.00; rule 35. 

Credit Luke Harrison for $4.00; rule 22. 
-Debit Cash for $10.00; rule 2. 

Credit Income for $10.00 ; rule 49. 
-Debit Cash for $10.00 ; rule 2. 

Credit Cash for $10.00; rule 3. It is nut necessar_y to make any 
entries for this transaction, but it is best to do so in order 
to ha\'e a record to show how the check was disposed of. 
Aug. 1st — D'cbit Expense and Labor, each, for $5.00; rules 35 and 48. 

Credit Cash for $4.00 ; rule 3. 

Credit Income for $1.00; rule 49. 
-Debit Expense for $31.00; rule 35. 

Credit Danville Bank for $31.00; rule 32. 
-Debit Expense for $100.00 ; rule 3?. 

Credit Galena Oil & Gas Co. for $100.00; rule 21. 
-Debit Galena Oil & Gas Co. for $10.00; rule 15. 

f Vedit Cash for $10.00 ; rule 3. 
-Debit Fence Account for $2.00; rule 41. 

Debit Cash for $12.50 ; rule 2. 

Credit Joseph Garfield for $14.50; rule 21. 

Page Seventeen 



May 


2nd- 


May 


5th- 


May 


9th- 


May 


12th 


May 


15th- 


May 


15th- 


May 


17th- 


May 


21st- 


May 


25th- 


June 


1st- 


June 


3rd- 


June 


5th- 


June 


5th- 


June 


7th- 


June 


12th- 


June 


12th- 


June 


16th- 


June 


25th- 


July 


1st- 


July 


3 rd- 


July 


6th 


July 


10th- 


July 


20th- 


July 


25th- 


July 


26th- 


July 


27th- 


July 


28th- 



Aug. 


6th- 


.Aug. 


8th- 


Aug. 


8th- 


Aug. 


15th- 



Aug ISth— Debit Galena Oil & Gas Co. for $50.00 : rule 15. 

Credit Cash for $50.00 ; rule 3. 
Autj. 20th— Debit T- C. Buell for $19.00; rule 18. 

Credit" Fence Account for $19.00; rule 42. 
Sept. 1st— Debit Cash for $240.00; rule 2. 

Credit Income for $240.00; rule 49. 
Sept. 5th— Debit Expense for $60.00; rule 35. 

Credit Danville Bank for $60.00; rule 32. 
Sept. 10th — Debit Expense and Labor, each, for $10.00 ; rules 35 and 48. 

Credit Cash for $10.00 ; rule 3. 
Sept. 15th— Debit Expense for $1.00 ; rule 35. 

Credit Cash for $1.00; rule 3. 
Sept. 18th— Debit Expense for $10.00 ; rule 35. 

Credit Income for $10.00; rule 50. 
Sept. 25th— Debit Cash for $5.00; rule 2. 

Credit Income for $5.00; rule 49. 
Sept. 27th— Debit Danville Bank for $240.00 ; rule 30. 

Credit Cash for $240.00; rule 3. 
^ept. 28th- Debit Frank Adams for $10.00; rule 15. 

Credit Cash for $10.00; rule 3. 
Sept. 30th— Debit Danville Bank for $300.00; rule 15. 

Credit Income for $300.00; rule 50. 
Oct. 1st— Debit Cash for $500.00; rule 2. 

Credit Danville Bank for $500.00; rule 32. 
(Jet. 1st- Debit Cash for $500.00; rule 2. 

Credit Cash for $500.00 ; rule 3. 
Oct. 3rd— Debit Expense for $15.00; rule 35. 

Credit Cash for $10.00; rule 3. 

Credit Income for $5.00 ; rule 49. 
Oct. 4th— Debit H. O. Franklin for $5.00; rule 15. 

Credit Income for $5.00 ; rule 49. 
Oct. 5th— Debit Cash for $200.00 ; rule 2. 

Credit Income for $200.00 ; rule 49. 
Oct. 10th— Debit H. O. Franklin for $10.00; rule 15. 

Credit Cash for $10.00; rule 3. 
Oct. 12th— Debit Bills Payable for $400.00 ; rule 24. 

Credit Cash for $100; rule 3. 

Credit Danville Bank for $300.00 ; rule 32. 
Oct. 12t]i— Debit Interest Account for $16.00; rule 46. 

Credit David Lincoln for $16.00; rule 21. 
Oct. 18th— Debit Expense for $20.00; rule 35. 

Credit Cash for $20.00 ; rule 3. 
r)ct. 20th — This transaction does not appear in the Journal because no e 

tries are required. 
Oct. 21st— Debit H. O. Franklin for $5.00; rule 17. 

Credit Cash for $5.00; rule 3. 
Oct. 31st— Debit Expense and Labor, each, for $25.00; rules 35 and 48. 

Credit H. O. Franklin for $25.00; rule 21. 
Oct. 31st— Debit H. O. Franklin for $5.00; rule 15. 

Credit Cash for $5.00 ; rule 3. 
Nov. 1st— Debit Cash for $3.00; rule 2. 

Credit Income for $3.00; rule 50. 
Nov. 5th— Debit Expense for $1.00; rule 35. 

Credit Cash for $1.00; rule 3. 
Nov. 10th— Debit Cash for $100.00 ; rule 2. 

Credit Income for $100.00; rule 49. 
Nov. 15th— Debit Expense for $43.00; rule 35. 

Credit Fence Account for $43.00; rule 42. 
Nov. 20th— Debit Cash for $100.00; rule 2. 

Credit Bills Pavable for $100.00; rule 28. 
Nov. 25th— Debit Bills Receivable for $100.00; rule 10. 

Credit Cash for $95.00; vu\e 3. 

Credit Discount for $5.00 ; rule 45. 
Nov. 26th— Debit Expense for $19.00; rule 35. 

Credit J. C. Buell for $19.00; rule 22. 
Nov. 28th— Debit Expense for $4.00; rule 35. 

Credit Income for $4.00 ; rule 49. 
Nov. 20th— Debit Loss & Gain Account for $4.50; rule 56. 

Credit Fence .Account for $4.50 ; rule 42. 



Page Eighteen 



Nov. 30th— Debit Cash for $495.00; rule 2. 

Debit Discount for $8.33; rule 44. 

Credit Cash for $500.00 ; rule 3. 

Credit Interest Account for $3.33 ; rule 47. 
Dec. 1st- Debit Expense for $35.00; rule 35. 

Credit Income for $20.00; rule 49. 

Credit Danville Bank for $10.00; rule 32. 

Credit Cash for $3.00 ; rule 3. 

Credit Oliver Arthur for $2.00; rule 21. 
Dec. 5th— Debit Expense for $3.00; rule 35. 

Credit M. E. Church for $3.00 ; rule 23. 
Dec. 10th— Debit Loss & Gain Account for $75.00; rule 56. 

Credit Cash for $75.00; rule 3. 
Dec. 16th— Debit Cash for $26.25 ; rule 2. 

Credit Bills Receivable for $25.00; rule 11. 

Credit Interest Account for $1.25; rule 47. 
Dec. 20th— Debit Expense for $150.00; rule 35. 

Credit Danville Bank for $150.00; rule 32. 
Dec. 25th— Debit Cash for $180.00; rule 2. 

Credit Income for $180.00; rule 49. 
Dec. 25th— Debit Expense for $5.00; rule 35. 

Credit Cash for $5.00 ; rule 3. 
Dec. 26th— Debit Cash for $30.00; rule 2. 

Credit Income for $30.00; rule 51. 
Dec. 28th— Debit Expense for $100.00; rule 35. 

Credit Bills Receivable for $100.00; rule 11. 
Dec. 31st— Debit Bills Payable for $100.00; rule 24. 

Debit Interest for $6.00; rule 46. 

Credit Discount for $5.00; rule 45. 

Credit Cash for $101.00; rule 3. 
Dec. 31st— Debit Frank Adams for $10.00; rule 15. 

Credit Cash for $10.00; rule 3. 
Dec. 31st— Debit Cash for $1.00; rule 2. 

Debit Expense for $1.00; rule 35. 

Credit Income for $2.00 ; rule 49. 
Dec. 31st— Debit Expense for $2.00; rule 35. 

Credit Cash for $1.00; rule 3. 

Credit Income for $1.00; rule 49. 



Page Nineteen 






VO CM ^ 
^ O ^ 
O VO ^ 



1^1 !M O 

On 00 LT; 

CO O 



> 



> 



» 



2 % 

c o 



a-' (X, oj 

C ' 






5 ^ 



o £ 

c 2i -a <u 5, 

o .i^ I- o (X, 






a; 



'V 



5 <u 3 



rt 



' a; 



< 
2 rt " 



P^ < Ui 



■; [JL, 

To 



T3 (M 

™ o 



cQ 






'-r c/} (U r^ 



o o 

H 






o -s ,^ aj .c 






I? 

E . 



■Ji! "-" — 



: U £' ""' 2 



lo^; 



hS 



rt o c rt o 



X o 



m: 



"! ? .. 



,m-!^^ 



, CS) 



I'M V 



CH WH UH 



i.H WH 



a,^ 



P o 



^EL,< 



> 



» 



> 



oj O 

in cT 
'5 i_ 



u O C 

I ou 






Q ^ :2 1 ■ 



& =' 



M & 



:© 









5~ sa 



@ 


@ 


© 








vO 


S 


CO 


O 


R 


^ 


•a 
c 










5AJ F, 






c o o < 



<| 
O c , 

.- c 

(J 



u ^ ^-^ u oj -S 



feH 



■ oj o 



O 3 



a. 

X o 



5" ^ nj 

►— , E .S 

S OJ rt 

-n -> — 



IH 



13 o 5 



^ ^: 



bJ5 C? 


Dray 
-Gilb 

of fei 
)aid h 
;e @ 



>> 



> 



;^o :ii 



P otd 



-c 5 -!.:5' 



'_H - ^ u U 



t,-«:r ' 2 



""go 

N rt . 

•J *; ^ 0- .5 



'~ - ^ '-> r>, c 



^ 


ffl 




5 u aj 5 ^ 
<; c "^ <u 


j_, (J 1 




oj 




DUgh 

e Ac 
Casl 


"5: 





e Ac 

ence 

Jled 

nvill 

rod 

— C 






r^ 


e'^JqS-? 


t.h 






t,H U 



h -^ C iJ ^ -^ « 






Cti rr, - C 3- 



pi -v. ^ > ' 



' — - ra 



i C O '-^ . r.^ 



C ^ 



QH 







^ 





CQ 


U 




c 


P 








HH 





-TQ 



c ^ • £ p oj I 

3^ O p :- <L. 

° I ^ 5 V- ^ 






Qrv 



o o 



5 £ o 



ja,u 



> 



>> » 



o ^ 



*^> » > » 



o c £ i 




O O 






-^ §T) 










■w 1) C rt 










t- *^ t: u 




- ® 






oug 

y no 
er ai 
er h 




^ 














=5 n G.=^ 




-S — 
















1 ?^R 




■ ' - 








'X 










^"3 








t/j 3 




y 


"i S' iT 


« <uO 






^ c <^ 




!\. 


X — Ji 




^ 


jx 


S 3 S ~ 


:^ 


U 


p: > p^ 


^ c 5 




1 


oC3oo2 


c 


a. 








" 





o«c 






►^ :- O 



=■ S -. >^ f^ 



o -r 



2 30 



K 5 






' "> Z ; ^ -^ 



m " n rt 



^ S o O 4J 






•X <u 

c .t; 



x 1— 1 

bJ3 I 
C I 
OJ -J-, i; ^ X -— 5^ ' 






■Z ^ <iJ u 






C X <. 

-a O n3 



^ S -^. 



^ o 



1U-; 



I " y -^ 



QH 



•i@' 



W H W H W H 



UH 



U. C r1 



88 



>~ 



» 



» 



» 



1 — . b/D.S 

<N1 O 



3 S rt 
S So c.s 



^©^p- 



1/5 >, 11 

u C nj 



,1 


r^ 




n! 


t:! 




<=5 


o 










u 






V 


rfl 




rs 


OJ 




O 


U 




P^ 


n! 




<U 


O 


•T3 



5 O T3) 



^ != =^ a . 






O rt 



C/5 



•.© 



c o 
X c ^ 

u-5 S 






^^> oO 

£ b/3^ . 



."2 -^ 

1^ hf 



bJO.:s o jji 






C c5 i;; ;/; 



? r;: > 



> 






a; 


X o 


Id 


p 

6?- 


?r c 


:^ 


u 
u 




S 


C 



•U-S:2 St:^ 



WH 



"J C nl o ■" 

lu P ^ JS o "" 



O c' 






•d o 



t/)tL,<; 



» 



> 



» >~ 






5 f^ 3^2 



O " O o 

o c t; o 



fe©'ii; 



ojp; o" 






T- U U 



b£ 



"Go 



D r 



Uh 



_ u ^ ^ 



.9 "tj 



•-» (JO 



ro CO a u 
^ ro ro CX) 



©@ 






ro _■ 



■ o It; 

^1 - p I J 

o c — ^ ^ , 



^ o ^ !-H 



^ : ^ 
o : o 

"r- IJ 

o t« p; 

AS ^ 



7 ^P^-S-S^ 

so =^.c " 

-t-J u 

tn ID 

■-U.C 



: J^ -CZ 



rt 



o rtP a; ^ ^ j; 

o "> C jn 

i^ <" S c o js. 



go 
4S' 



WH 






i &00 „ _ 

oo ooo 






y en o 

-.OE 



loSi'So 



o 



^^ ^' 



, r~ ^ ^ V ^ 



PhH 



Q 'O 



> 



>" 



> 



>~ 



> 



» 



i^ei 



a; OJ 






S lU,' 



nj 13 -J 
<" ra o 









^(C. 



3<i 



(J (U ■ 

:' P 



^•o j; . -a 5 J.' 



— o <; .= u V - 



C2 rr ., 



■. 0; — 



: O Sf X ^. 5 s ^ ■ 



UH 



^H t^i 






'(^1 



o c — -r' !^ " 





ro 


tv 


■ vo 






: P O j; 


J< 
























u 






: 1 ^oCi 


r/1 ^ U 








> 


- i^ §^ 


"P r" 


'X 


0. 








oo 






» 



» 



> = 



>^ 



» 



>^ 



So 



11-, o < 



irv r^ ^n U-. 






. f^ ^ -J = — 



•~ o 



"" o — 2 !- 
o"* Ji S 5 



^ 5 -• -a ^ ■ 

5 -M ' 









^^" I; 

•7; 5-' 






'@i:S 



oi X O •^' 






5 FC p 



-^ O (VJ ^ - ■ 



t^ 



Pg 



CN] 



Q On 



>.5 c 
>- :: 3 

■^ S o 



» 



» 



>' 



» 



> 



> 



» 



'> 



» 



So 

5® 






. 00 J +^ 



b* 



A .r .1:; _ b/o ^ 
rt 5 - ■« ^ ^ 






•S OJ E g i 



b/D=. y i. -z; I-, 



5 £ t.^ Su c 



c:0 



1- -^ O <u 



WH 



WH 



x" c 



--H ~' OJ 



Ki; 






■M O ^ 1^) 



-5 ''-■ •" c a ^ ^' o 



/: T3 j; 



UH 



l^ H 






I o ^ 



Oh 



^ ^ o 



» 



®4I 






cq 



'H > 






3 ra 1^ f 



c rt o o w 
^ ii -• ^ -- 












O 3 
C/1 o 






C CiO 3 3 „ ^ 

^ c r; eq ^3 (5 



3 ^ =" 
Ji O X 



c 

a 

ni C^l O — 

c ^ o "^ 

O 3 ^'^ C 



3 - 



T3 "O 








=^"0 2 




^S^ 




^O^ 
















1 ^ IT! 




:^^^ 




CD ^ 2i 


C 




o 


b == r« 


■^ 


TO Qi 


JJ 



WH 



WH 



O o u j:: 



V ° <" <u 



?1=5,5ii 



> = 



— o 

0^3- 



c/j 3 

re u o 
ogjO « 






> 



CS o o 



o 


.« 


-D 








n 




< 


u 




n 






o 








xf'. 




u 


^ 




1^ 










fe 


>> 

t- 

K 




CO 



< b/). 



'©) 









UH 



c ° ° 



On O 



> 



> 



» 



>~ 



» 



>' 



>' 



» 



I ^-7^ 

I b/j— 



ii© 



b/j i; 



c ^ -^ y y 



S ri nJ 

2 SQ 



5 rt 



r" :- ^ y^ ' 1 ;^ 
■ K C '■^' 



i- O 






(U <U r- ,-i 


o o 






p t/J u ^ 


















IJ 








u.-S 






■"•*" S'c 


•U 






rt O . 


o ^ 








^ t 






'-^^Q rt 


Td 5 






^rl° 


n3 






1 ., 


(L 




?i ic'S 










S'^ 




0- 


'J 13 p J. 


u s 


1 


0. 


,^'-'^ 0. 






:s-^ S-.iJ 



rt Q ^ ,- E 



3^' 



"^ — ^ 






; ;^ u <u w ^ 



•5; p. 
C-O 






U oj "rt C U 






ra C -C (^1 



W H 



KH 



UhHQH 



Q^v 


u 


M- "13 v! 


<u 


^ .j_i ro 


^ 










?ia. 


p 


'-C ii 1^ 
















'-' 1 jj 


rt 


'-' i.C^ 






•n 






1 rt ^ 




'" ^ 


'5 


S -H 



Q 'g. 



» 



>= 



» 



'^® 



'^ t^ 



O IJ 


; - 


O 4= 




o ^ 


<u c 


ifi--^ 


•7" f'' 


>,o 


3U, 



3 £ 



>0, >r 



>^ 



» 



;^. >-,o 

c o 
JH "^^ — 



r;«^ 



^ 5u-' 



^^6 









^■>-5Q 



-= = "*- hr 'y 



!- fe® 



1- -t3 






G (u 






■*- <u 






>.iy: 






rt . 












S u 












C '^ 






^U 










. a; 


<u 


E-^ 







Q S :: 

- -, ^ •= t^ " S • 
3 ■" .E 5 ?^ f^ "^ 



=^H 









J -f ^ 8 J? i ^"^S f^ -5 .2 ^. ^ c - 
S ^ -5 d c rt ^ w- _■ r'i "5 E c f-: "5 

^ o -->««■ >r o - "^ . c S ^ pr o u 

-H ah EH WH 



Q oj 



•a 5 



W(l,< 






6 r-"T3 

o c o 


3 C 
















<u rt .i 






> '"'' S 






oO ^ 
















It — I us 
ce on m 
at 43c 1 


-I borro 
n my no 
ate, with 






ought a 
by T. P 
Gates, r 




5 is 


i ="a 






•^ c < 




pfc o 


3 b/. P 
rt C o 






7lu 




<■ -1- CJ 




";.. 




E •S'o 


> «■ 


SC-5 


t^.Q S 


1 




RRo 


3 S S ^ CA' 


^3 r- ^-.l; 


Ci 


rt •- O" rt 






m 




fi 


H C 


;H 


(1- 


h 


r^ 



o ^ 



o 

o 


8 




1*"* 


00 




t^ 








o o 


o 




U-. o 


Lri 




ir, OO 


r^ 




OO t^ 


-> 




CO U-. 


r'J 










O 






o 






VO 






tx 






\o 











>. 5 

-5 o 



^'fc< 



> 



> 



> 



> 



O C 



:c^ ^ 



>; 5 "P — 



, O "J 
i <s\ -r; 

> bb>j 

3 u 9 



£ ^- 



§00 

I ^ 



= < 












O CB O 



'J: g h 



t^ . 



i- - S ^ c 

r 1 O ^^ t- C "5 



- — so- 
rt p 









rt c - - ■" 



rt ; 



- ^ re •— ^ 

- H O Q H [ 






(u ii 






V 



v. ^ 



' X c c 






HH 



X c 



^ i - T 



JH 



= ° 8 



2> 



>> >> 



■> 



>~ 



» 



- o 

- o 



^ o 






'J nj « 

y > 3 

C rq O 



5-^' c 



r- O 



J 5^ 



^ u 



.2 ^ 

^ -A 

— o 






OhH 



: 2 ^ 

-^ "o C 
!u '-'.' re 

^ oJ '■« 5 Q ^ I S ^ O ■/■' ^.. r- . 

~ S ^<^ = ^ -f ►^ .:£ o G.-^ — 

"■^XC^-reC — ^XC"rt 
O "", ,r. \o 



^ -^ jA 
S c 

"Sad 



<u 



11 



iJ <u -x 
fV 1- o 



^ rt ■ ' 



5 @^ .S 

o CC .S x) 
"cS O "O — 

li 7^ /3 ■ 



_ o 



U4H 









o 


"S 


6^ 


rt 




T3 


^ 


o 












K 


T3 


-r 


rt 








cu 


^ 






CI- 


p, 



bjo i; -^ 



iM 


c 






W 




o 




c 


r^ o 








c— 1 




•T3 


© 


S- 


s 


00 




•V, 




•n 


aj 


OJ 


^^ 










u 




lU 


rri 


t/j 


br 


<1) 


i! 






Si 


zj 



I t3 iJ X ~ 



=■ i; - - X 






x" C 



WHh 



Explanation of Ledger 

Tiie double \ertical line in the center of the page separates the Debit Side of an account Irom 
the Credit Side. 

The Left Hand Side is the Debit Side. The Right Hand Side is the Credit Side. 

The Columns on the Debit Side are identical to the Column- on the Credit Side. 

The first double column at the left hand side is the Date Column, In this column is kept 
the date on which each transaction occurred. 

The next column to the right of the Date Column is the E.xplanatory Column. In this column 
is kept a short explanation of each transaction. 

The next column to the right of the Explanatory Column is the Folio Column or Journal 
Page Column. In this column is kept the numl)er of the jiage on which a record of each trans- 
action is found in the Journal. 

The next column to the right of the Folio Column is the .\mount Column. In this column 
is kept the amount of each Debit and Credit. 

How to Post to the Ledger 

Amounts are Posted from the Journal to the Ledger any lime after they have l)een recorded 
in the Journal. 

Post the Amounts to the Ledger that are found in Sundry Personal .\ccounts Column in the 
Journal. 

To learn how to Post to the Ledger the student should notice closely the form used in this 
set and follow the instructions and ex])lanations given. 

First turn to the first page of the Journal. Beginning with the first amount that is found 
in Sundry Personal Accounts Column, proceed in the following manner to make entries in the 
Ledger : 

For convenience, we have used the following abreviations, L. P. C. for Ledger Page Column 
and J. P. C. for Journal Page Column. 

Jan. 1st— Debit Real Estate for $12,000.00 Jan. 23th— Debit Fence Account for $12.00 

and place 1 in L. P. C. and 1 in y. P. C. and place 6 in L. P. C. and 3 in |. 1'. C. 

Jan. 1st— Debit P.ills Receivable' for $80.00 Jan. 27th— Debit Fence Account for $4.80 

and place 1 in L. P. C. and 1 in I. P. C. and place 6 in L. P. C. and 3 in |. P. C. 

Jan. 1st— Debit Ralph Taylor for $100.00 and Jan. 27— Credit Fence Account for $4.80 and 

place 1 in L. P. C. and 1 in T- P- C. place 6 in L. P. C. and 3 in T- !'• •- • 

Jan. 1st— Debit Andrew 'Mamlin for $10.00 Feb. 1st— Credit Ralph Taylor for $100.00 

and place 2 in L. P. C. and 1 in f. I'. C. and place 1 in L. P. C. and 3 in I. P. C. 

Jan. 1st— Debit Equipment for $3392.00 and Feb. 3rd— Debit Danville P.ank" for $116.00 

place 2 in L. P. C. and 1 in ]. P. C. and place 4 in L. P. C. and 3 in I. I'. C. 

Jan. 1st— Credit Proprietof- for $16,582.00 Feb. 3th— Debit M. E. Church f.'ir $3.00 and 

and place 2 in L. P. C. and 1 in ]. P. C. ])lace 5 in L. P. C. and 3 in T- P- C". 

Tan. 1st— Debit Proprietor for $150.00 and Feb. 5th— Credit Danville "Bank for $3.00 and 

place 2 in L. P. C. and 1 in T- P- C. place 4 in L. P. C. and 3 in J. P. C. 

Jan. 1st— Credit Frank Adams for $50.00 and h>l). 7th— Debit Ohio Fence Co. for $410.00 

]ilace 3 in L. l\ C. and 1 in j. P. C. and place 6 in L. P. C. and 3 in I. P. C. 

Jan. 1st— Credit Bills payable for $100.00 and Eel). 7th— Credit Danville Pank for $401.80 

place 3 in I.. P. C. and 1 in J. P. C. and place 4 in L. P. C. and 3 in I. P. C. 

Jan. 1st— Debit Danville Hank for $600.00 Feb. 7th— Credit Discount for $8.20 and 

and place 4 in L. P. C. and 1 in T- P. C. place 5 in L. P. C. and 3 in I. P. C. 

Jan. 9th— Debit John Madison for $1.00 and Feb. 12th— Credit Bills Payable for $4-00.00 

place 3 in L. P. C. and 1 in J. P. C. and place 3 in L. P. C. and 4 in 1. P. C. 

Jan. 11th— Credit Shelby Clay Co. for $40.00 Feb. 15th— Debit Jacob Jackson for $80.00 

and place 4 in L. P. C. and 1 in T- P- C- and place 7 in L. P. C. and 4 in T- P- C. 

Jan. 13th— Debit Shelby Clay Co. for $5.00 Feb. 22nd— Credit Danville Bank for $20.00 

and place 4 in L. P. C. and 2 in I. P. C. and place 4 in L. P. C. and 4 in }.. P. C. 

Jan. 13th— Credit Frank Adams for $5.00 and Feb. 25th— Debit Joseph Garfield for $86.00 

place 3 in L. P. C. and 2 in J. P. C. and place 7 in L. ]\ C. and 4 in ]. P. C. 

Jan. 15th— Credit Bills Receivable for $80.00 Feb. 25th— Credit Fence Acciunt for $86.00 

and place 1 in L. P. C. and 2 in T- P- C. and place 6 in L. P. C. and 4 in 1. !'. C. 

Jan. 17th— Debit Luke Harrison for $5.00 :\Iarch 1st— Debit Danville Bank for $50.00 

and place 5 in L. P. C. and 2 in J. P. C. and place 4 in L. P. C. and 4 in J. 1'. C. 

Jan. 17th — Credit Danville Bank for $5.00 March 1st — Credit Joseph Garfield for 

and place 4 in L. P. C. and 2 in }. P. C. S50.00 and place 7 in L. P. C. and 4 in J. P. C. 

Jan. 19th— Debit Fence Account for $410.00 March 12th— Credit Jacob Jackson for $80.00 

and place 6 in L. P. C. and 2 in J. P. C. and place 7 in L. P. C. and 4 in T. P. C. 

Jan. 19th— Credit Ohio Fence Co. for $410.00 April 3rd— Credit Danville Bank for $15.00 

and place 6 in L. P. C. and 2 in J. P. C. and place 4 in L. P. C. and 5 in j. P. C. 

Jan. 21st— Debit Danville Bank for $80.00 April 9th— Credit Fence Account for $38.00 

and place 4 in I.. P. C. and 2 in J. P. C. and place 6 in L. P. C. and 6 in J. P. C. 

Page Thirty-five 



April 17th — Credit Fence Account for 
131.50 and place 6 in L. P. C. and 6 in T- P. C. 

April 21st— Debit Danville Bank for $203,50 
and place 4 in L. P. C. and 6 in J. P. C. 

May 1st— Credit Danville Bank for $500.00 
and place 4 in L. P. C. and 6 in J. P. C. 

May 2nd— Del)it Frank Adams for $30.00 
and place 3 in L. P. C. and 6 in J. P. C. 

May 2nd— Credit Danville Bank for $30.00 
and place 4 in P. P. C. and 6 in J. P. C_". 

May 9th — Debit Fence Account fnr $21.50 
and place 6 in L. P. C. and 7 in J. P. C. 

May 9th— Credit Joseph Garfield for $21.50 
and place 7 in L. P. C. and 7 in J. W C. 

May 12th — Credit .\ndre\v Hamlin for 
$10.00 and place 2 in L. P. C. and 7 in J. P. C. 

May 15th — Credit Fence Account for $43.00 
and place 6 in L. P. C. and 7 in J. P. C. 

May 15th— Debit Fence Account for $2.00 
and place 6 in L. P. C. and 7 in ]. P. C. 

May 17th— Credit Jacob Jackson for $30.00 
and place 7 in L. P. C. and 7 in J. P. C. 

May 25th— Debit Danville Bank for $553.00 
and place 4 in L. P. C. and 7 in }. P. C. 

June 1st— Credit Gilbert Polk for $8.00 and 
place 7 in L. P. C. and 7 in T- P. C. 

June 3rd— Credit Danville Bank for $50.00 
and place 4 in L. P. C. and 8 in T- P. C. 

Tune 7th— Debit T. D. Anderson for $100.00 
and place 8 in L. P. C. and 8 in J. P. C. 

lune 12th— Debit New York Milling Co. for 
$100.00 and place 8 in L. P. C. and 8 in J. P. C. 

Tune 12th— Credit New York Milling Co. 
for $25.00 and place 8 in I.. P. C. and 8 in T. 
P. C. 

June 16th— Debit Bills Receivable for $25.00 
and place 1 in L. P. (.". and 8 in f- P- C. 

June 25th— Debit Andrew Hamlin for $10.00 
and place 2 in L. P. C. and 8 in T- P- C. 

June 25th— Credit Danville Bank for $10.00 
and place 4 in L. P. C. and 8 in T- P- t". 

July 6th— Debit Jacob Jackson for $30.00 
and place 7 in T_^. P. C. and 9 in J. P. C. 

Tulv 10th— Credit D. E. Baker for $2.00 and 
place'8 in L. P. C. and 9 in J. P. C. 

July 20th— Credit Andrew Hamlin for $10.00 
and place 2 in P. P. C. and 9 in T. P- C. 

July 26th— Credit Luke Harrison for $4.00 
and place 5 in L. P. C. and 9 in T- P. C. 

Aug. 6th— Credit Danville Bank for $31.00 
and place 4 in L. P. C. and 10 in T. P. C. 

Aug. 8th— Credit Galena Oil & Gas Co. for 
$100.00 and place 9 in L. P. C. and 10 in T- P. C. 

Aug. 8th— Debit Galena Oil & Gas Co. for 
$10.00 and place 9 in L. P. C. and 10 in J. P. C. 

Aug. 15th — Debit Fence Account for $2.00 
and place 6 in L. P. C. and 10 in f- P. C. 

Aug. 15th— Credit Joseph Garfield for $14.50 
and place 7 in L. P. C. and 10 in T- P- C. 

Aug. 18th— Debit Galena Oil &"Gas Co. for 
$50.00 and place 9 in L. P. C. and 10 in T- P. C. 

Aug. 20th— Debit T- C. Buell for $19^00 and 
place 9 in L. P. C. and 10 in T- P. C. 

Aug. 20th— Credit Fence Account for $19.00 
and place 6 in L. P. C. and 10 in f- P. C. 

Sept. 5th— Credit Danville Bank for $60.00 
and place 4 in L. P. C. and 11 in J. P. C. 



Sept. 27th— Debit Danville Bank for $240.00 
and place 4 in L. P. C. and 11 in 1. P. C. 

Sept. 28th— Debit Frank Adams for $10.00 
and place 3 in L. P. C. and 11 in T. P- C". 

Sept. 30th— Debit Danville Bank for $300.00 
and place 4 in L. P. C. and 11 in J. P. C. 

Oct. 1st— Credit Danville Bank for $500.00 
and place 4 in P. P. C. and 11 in T- P- C. 

Oct. 4th— Del)it H. O. Franklin for $5.00 and 
place 9 in L. P. C. and 12 in T- P. C. 

Oct. 10th— Debit H. O. Franklin for $10.00 
and place 9 in L. P. C. and 12 in T- P- C. 

Oct. 12th— Debit P.ills Payable "for $400.00 
and place 3 in P. P. C. and 12 in T- P- C". 

Oct. 12th— Credit Danville Bank for $300.00 
and place 4 in L. P. C. and 12 in T- P- C 

Oct. 12th— Del)it Interest .\ccount for $16.00 
and place 10 in P. P. C. and 12 in T. P. C. 

Oct. 12th— Credit David Lincoln for $16.00 
and place 10 in L. P. C. and 12 in f. P. C. 

Oct. 21st— Debit H. O. Franklin for $5.00 
and ])lace 9 in L. P. C. and 12 in f. P. C. 

Oct. 31st— Credit H. O. Franklin for $25.00 
and place 9 in L. P. C. and 12 in f- P- C. 

Oct. 31st— Debit H. O. Franklin ff)r $5.00 
and place 9 in L. P. C. and 13 in J. P. C. 

Nov. 15th— Credit Fence Account for $43.00 
and place 6 in L.i P. C. and 13 in T. P. C. 

Nov. 20th— Credit Bills Payable" for $100.00 
and place 3 in L. P. C. and 13 in J. P. C. 

Nov. 25th — Debit Bills Receivable for 
$100.00 and place 1 in L. P. C. and 13 in T- P. C. 

Nov. 25th— Credit Discount for $5.00 and 
jilace 5 in L. P. C. and 13 in j. P. C. 

Nov. 26th— Credit P C. Buell for $10.00 and 
place 9 in L. P. C. and 14 in J. P. C. 

Nov. 29th — Debit Loss & Gain Account for 
$4.50 and place 10 in L. P. C. and 14 in 1. P. L'. 

Nov. 29th— Credit Fence Account for $4.. 50 
and place 6 in L. P. C. and 14 in T- P- C. 

Nov. 30th— Debit Discount foi" $8.33 and 
place 5 in L. P. C. and 14 in ]. P. C. 

Nov. 30th — Credit Interest for $3.33 and 
place 10 in L. P. C. and 14 in T. P. C. 

Dec. 1st— Credit Danville Bank for $10.00 
and place 4 in L. P. C. and 14 in T- P- C. 

Dec. 1st— Credit Oliver Arthur for $2.00 and 
l.lace 10 in L. P. C. and 14 in T- P- C. 

Dec. 5th— Credit M. E. Church for $3.00 and 
l.lace 5 in L. P. C. and 14 in J. P. C. 

Dec. 10th— Debit Loss & Gain for $75.00 and 
place 10 in L. P. C. and 14 in I. P. C. 

Dec. 16th— Credit Bills Receivable for $25.00 
and place 1 in L. P. C. and 15 in J. P. C. 

Dec. 16th — Credit Interest Account for $1.25 
and place 10 in L. P. C. and 15 in T- P. C. 

Dec. 20th— Credit Danville Bank for $150.00 
and place 4 in L. P. C. and 15 in T- P- C. 

Dec. 28th — Credit Bills Receivable for 
$100.00 and place 1 in L. P. C. and 15 in T- P. C. 

Dec. 31st— Debit Bills Payable for $100.00 
and place 3 in L. P. C. and 15 in J. P. C. 

Dec. 31st — Debit Interest for $6.00 and place 
10 in L. P. C. and 15 in J. P. C. 

Dec. 31st — Credit Discount for $5.00 and 
place 5 in L. P. C. and 15 in T- P. C. 

Dec. 31st— Debit Frank Adams for $10.00 
and place 3 in L. P. C. and 15 in J. P. C. 



Page Thirty-six 



INDEX TO LEDGER 

Page 

Adams, Frank 3 

Anderson, T. D 8 

Arthur, Oliver 10 

Bills Receivable 1 

Bills Payable 3 

Baker, D. E 8 

Buell, J. C : 9 

Danville Bank 4 

Discount 5 

Equipment 2 

Fence Account 6 

Franklin. H. 9 

(jarfield, Joseph 7 

Galena Oil & Gas Co 9 

Hamlin. Andrew 2 

Harrison, Luke 5 

Interest 10 

Jackson, Jacob 7 

Lincoln, David 10 

Loss & Gain 11 

Madison, John 3 

M. F. Church 5 

N. Y. Milling Co 8 

Ohio Fence Co 6 

Proprietor 2 

Polk, Gilbert 7 

Real Estate 1 

Shelby Clay Co 4 

Taylor, Ra'lph 1 



Page Thirty-seven 



ooo 


o 




o o o 


o 




Q ,r, o 


ir. 




X ^lO 


O 






(^1 





ooc 


o 


ooo 


o 


O"-. o 


ir. 


X "^l o 


o 




<^l 



<■-;■ 





c 


O C" 






o :^■. 




o 


O !^l 




rn 






<^l 


(N, CO 




-t 


-t rn 


'J 






Hh 







,o 

O 


o 


g 




8 


C^) 


00 


o 




ri 


00 


o 


o. 








C^l 


1^ 






\C 




'O 




r^ 













c X 



3o 





^ ir. 




»— ' 


(Nl 























oo 
oo 


8 




(MO 













:z- 





OC 
OC 




88 


g 






O.r, 


ir, o 
1 r, m 


ir. 


cj 

Oh' 


^ fvl 






1 — , 












C 














ni 
U 
























c 














C 




m'- 




P3 


On 


1—1 r^ 




-^ 

















O (u 




;^rxQ 




o8Soo8S888888oo 

• ^ ^ ^, ^ O r'. -. - ^O ^ O O - '^ 


g 
1 



■ (^\ r-\ rr^ r^. ^ <r. \C \0 CC X G ^ ^ f^l ■ 



^ 


oo 


^ 


d 


oo 


•^ 


o 


O lO 


ir. 


-t 


^ 








>, 5 o ^ o _c 



•S -3 -^ = ^ .. ^ - 

rt OJ S ;= -rr^ 5 S. 

> " oj o _ P^ -S 

£ ni e y d, .> £ ■> 

rt -^ rt ^ C rt c^ : 



1) lu >,.':; ;= rt 3 

o >, nj — — e -t^ 



t^ 1 o r^ CM ro ■—< CM rO 1 n \^ L/-, .-^ (^1 ^^ O 



"cj "oj i) C-k^ 






Au: £ t: < ^ s ^,^,< 'X c c p G 



O O O O '■'^ 1^ Q C' 



O CC' ^^ Lr. o 



■O Q ! 

r, -^ ( 

1 ir, n . 








a. 


"^ 









O I Q 






o 
o 






-1- 






2 


ir, 

o 

(LI 

Q 






o 






■^ 






C 
'■J 

l1 




o 


LT-, 













oo c 

(MOO 
00 Ln iJ- 




O 1^ 

OC CO 


X 

o 




rr; ro ir. 


I'ly Disci unit 

Discnunt 


5 


C 
s 




s 


r^ ir. ^ 






X 




X 


^ 




To Di.sronnt 




o\ 


? 








c 
2 







oo 


o 




CC rn 






O (N 


oc 




\0 u". 






-+-+ 







■ vo y; i~^ O """^ '^ 






n! 



L. — -^ -J u 

■r ^ O 

^- u: - £ J g 



: d 



n! r^ !;7 !T'v-l 



3' : C a> 



O rvi '^ '-' (N (M 






2 :£ 5 '^ ^ S 





ss 




g 








oo 


O 








00 <^ 








u 






-i- '^ 


&H 




>— . 






.y 












<u >, 




J2 ni 




■ud: 




=a by: 




















nJ n! 




O03 




>>^ 




K- 




n w 


•-^ 


r-< ^ 








^ >. 




o nJ 








pi; f^ 




S8 


8 

o 






'U 




z: 


-+ c^. 


-. 














rt 






a; 
























-^ 






■ 1 , 






Q 


















<u pq 












3 O 








— o 




O ^ 




o C; 




' ' 




^ . 




^ 




ir, ^ 


o! 


'"' 


















t 


^ 













TIJ 0^ 






X 












iu 


^K 




" c<i 








O 


c 










O 


o 










,r 


ir. 










(M 


ri 










00 
















































c. 












CC 












■ 1 

























,f 
























— 












cs 












c 




















> 




., 








2 




^ 








< 

cm 






















o 


;::; 


(V 








Cn 










o 


■^ 














i; 






o 




c 








z 




iJ: 








J 












p-1 












§ 




s 


So 


c 




w 
« 




(~ 


Oir, 


ir 






c 


O <^! 
















o 












>* 












^ 












u 




<r 








2; 








































a. 
























3 












c 












■^ 












Q. 
























■J- 




































_ 












^ 












»— 












_ 






















— — 












C\) 










En 


'— 




















5. 




<N 





C' 


— : r~, 


Q 


o 


OO 


c; 


o 

o 


Q o 











o o 


^ 


OO 


o 


o o 


o 




vC' 



b/: M 



o 


o 




o 


c 




ir. 


ir. 




CV) 


t^l 





8888 

<r. o 'r, ,r. 


o 
o 

ir, 
1^1 






r- 1 (^ 1 r. \ rr-_ 




•^ 










s 


-* o — -- 
" (^1 ro 




C 


" c 




t- 

c 









r^ 


tr 












J. 1". c. 

14 
13 


l>v Interest, reeeix'ed... 


s 

'Z 




o 


o ^ 





> 6 

<u 


16 00 ] 
6 00 1 




1^ 






^1 ,r. 


C^ 


Z 


_ 
;;;; 


- 


C 


£ 













tJ . — ■ I, 



OQ 


f^l 


<^1 




-t- 


o. 


•1- <r. 


1^ 


\o 


W 




o^ 



Inventory, January 1st, 1912 



Cash (111 hand (this includes C. uf D. o 
150 acres of land vv.irth $80.00 per acre 
Amount in Danville l;5ank. subject to < 

John Madison owes me, on account 

Luke Harrison owes me. on account 

T. D. Anderson owes me. (in account 

Xew York ^lilHni; Co. owes me. on acc(.iunt 
Fence on hand, 100 rod, 11-48 (Ft 40c per rod.. 

.^0 rod, 18-58 ra .^Oc per rod.. 

30 rod, 16-48 (a 45c i)er rod.. 

( )ne set fence stretchers 

I'reip'ht on fence, on hand.... 



Danville Bank, L. Ak 
leck 



:heck, currency ) $ 



125C bushels corn (iv 40c per bushel 

500 shocks fodder (a: 12c per shock 

40 tons hay (a; $15.00 per ton.. 

300 bushels wheat @ 80c per l)ushel 

200 bushels oats @ 50c per bushel 

100 bushels potatoes @ 80c per bushel. 

6 horses @ $150.00 each 

One share in Percheron Horse Co 

Two shares of Galena Oil @ Gas Co. 

15 cattle (a $30.00 each 

40 hoo-s fa $15.00 each 

50 sheep (cv $3.00 per head 

200 chickens (a' 25c each 

l'\arm implements 



;tock (a $50.00 



per 



^har 



ital etpiipment 



Proprietor's property on hand Jan. 1st, 1912., 



I owe Frank .\dams, on account 

1 owe Shelby Clay Co., on account 

1 owe Gilbert Polk, on account 

I owe D. E. Baker, on account 

I owe Galena Oil i.^ Gas Co., on account 

I owe David Lincoln, on account 

I owe 01i\-er .\rthur, nn accdunt 

M\- note, outstandiuL; (unpaid) fa\(ir Jdhn Durlin. 



40 00 
25 00 
13 .50 
10 00 
2 50 



1427 7r 

2000 00 

56 70 

1 00 

1 00 

100 00 

7?' 00 



01 00 



500 00 

60 00 

600 00 

240 00 

100 00 

80 00 

900 00 

200 00 

100 00 

450 00 

600 00 

1.^0 00 

50 00 

200 00 



$ 4230 00 
$17982 45 



,.$ 



5 00 
35 00 

8 00 

2 00 
40 00 
16 00 

2 00 
100 00 



1 'r(.)prictor's debts J; 



Lt, 1012.. $ 208 00 



Closing the Ledger 



In Double Entry bookkeepiui;- the Ixniks will 
balance if the work is correct. In other \\iir(F 
the sum of all Debits will ecpial the sum uf all 
Credits. 



.\l\v; 



take a Trial Balance i)ef( 



the Ledger. 

Xe\er Close the Ledger until il Balances. 

How to take a Trial Ijalance : Draw a ver- 
tical line across a sheet of pai)er. Place all 
of the Debits \-iiu ha^■e made in tiie Ledger (u. 
the Left Hand side uf the line. I 'lace all uf 
the Credits vou ha\e made in the LediL^er on 
the Right Hand side of the line. Then place 
the total amount of Expense fdund in Expense 
Column in the Journal mi the Left Hand side. 
I'lace the Amount uf Cash oil hand fdund nii 
the Debit side df Cash Account en the Left 
Hand side df the line. Then |ilace the Idtal 
amiiunt df Income fdUnd in Income Column nn 
Page Forty-eight 



the Right Hand side of the line. Add the 
amounts on each side of the line. If the total 
amount is the same on both sides the work is 
correct. If they are not the same there is a 
mistake in the entries. 

In taking a trial balance do not use any of 
the am(.)unts taken from an inventory except 
from the one taken at the time the books were 
opened. The inventor}- taken at the time the 
bcioks are closed must not lie used in taking 
a trial balance. In other words use the 
amounts that ha\'e been Posted frdin the Jour- 
nal to the Ledger, total expense, total inconie 
and the amount of cash on hand when the trial 
balance is taken. 

.Vlways take an Inventory of all Speculati\e 
.\ccounts before closing the Ledger. 

If a Speculative Account has an inventory. 
place the amount of that inventory on the 
Credit side of the account, before closinc: that 



account. For this inventory, consult in\-en- 
turv taken Jan. 1st. 1912. 

The student should make a thorough study 
of the Ruling of each account and follow the 
explanation carefully. 

REAL ESTATE 

The first acc(.iunt in this Ledger is Real Es- 
tate. It is a Speculati\-e Account and has an 
inventory of $12,000.00. Place that amount 
on the Credit side of the account. It can be 
seen at a glance that this account balances, 
therefore rule it by drawing a double line which 
indicates that the account is closed. Then 
bring the amount of the inventory down under 
the double line on the debit side. The account 
is then open for the following year, 

BILLS RECEIVABLE 

Draw a single line under the amounts of this 
account. Add the amounts on both sides of 
the account. The account balances, therefore 
draw a double line to show that the account 
is closed. 

RALPH TAYLOR 

It can be seen at a glance that this account 
balances, therefore draw a double line to show 
that the account is closed. 

ANDREW HAMLIN 

Draw a single line under the amounts. .\dd 
the amounts. This account balances, there- 
fore draw a double line to show that the ac- 
count is closed. 

EQUIPMENT 

This is a Speculative Account and has an 
inventory of $4230.00. Place this amount on 
the Credit side, draw a single line, bring both 
amounts down below the line, place the smaller 
sum under the larger, draw a line, subtract. 
The result is a Credit balance and exhibits a 
gain of $838,00. Draw a double line and bring 
the amount of the last inventory down on the 
Debit side below the double line. 

PROPRIETOR 

Do not close this account until all of the 
others have been closed. 

FRANK ADAMS 

Draw a line under the amounts, add both 
sides of the account, place the smaller num- 
ber under the larger, draw a line, subtract, the 
result is a credit balance of $5.00. P>ring the 
amount down below the line. This is the 
amount the Proprietor owes I'rank '.\dams. 
Tan. 1st. 1012. 

BILLS PAYABLE 

13raw a line under the amounts, add both 
sides of the account, place the smaller sum 
under the larger, draw a line and subtract. 



the result shows a Credit balance of $100.00. 
This is the amount of notes the Proprietor has 
outstanding (unpaid) Jan. 1st, 1912. 

JOHN MADISON 

This account has only one entry. It is a 
Debit. Xo ruling is necessary in a case like 
this. 

DANVILLE BANK 

Draw a line under the amounts, add both 
sides of the account, place the smaller sum 
under the larger, draw a line and subtract. 
The result shows a Debit balance of $56.70. 
This is the amount the Proprietor has in the 
Danville Bank subject to check Jan. 1st, 1912. 

SHELBY CLAY CO. 

Draw a line under the amounts, bring the 
amounts down below the line, place the 
smaller under the larger, draw a line and sub- 
tract. The result shows a Credit balance of 
$35.00. The Proprietor owes that amount to 
the Shelby Clay Co. Jan. 1st, 1912. 

LUKE HARRISON 

rJraw a line under the amounts, bring both 
amounts down below the line, place the 
smaller amount under the larger, draw a line 
and subtract. The result shows a Debit bal- 
ance of $1.00. Luke Harrison owes the Pro- 
prietor that amount Jan. 1st. 1912. 

M. E. CHURCH 

It can 1)6 seen at a glance that this account 
balances, therefore draw a double line to show 
that the account is closed. 

DISCOUNT 

Draw a line under the amounts, add lioth 
sides of the account, place the smaller sum 
under the larger, draw a line and subtract. 
The result shows a Credit balance of $9.87. 
This is a gain to the Proprietor. Draw a 
double line to show that the account is 
closed. All accounts exhibiting a Loss or 
gain are closed in this manner. 

FENCE ACCOUNT 

This is a Speculative account and has an 
inventory of $91.00, according to the inven- 
tory taken Jan. 1st, 1912. Credit this account 
with that amount, draw a line under the 
amounts, add both sides of the account, place 
the smaller sum under the larger, draw a line 
and subtract. The result shows a Credit bal- 
ance of $8.50. This is a gain to the Proprietor. 
Draw a double line to show that the account 
is closed and then bring down the amount of 
the inventory on the Debit side of the account. 

OHIO FENCE CO. 

It can be seen at a glance that this account 
balances, therefore, draw a double line to show 
that the account is closed. 

Page Forty-nine 



JACOB JACKSON 

Draw a line under the amounts, add b(jth 
sides of the account. This account l^ialances. 
therefore draw a doulile line to show that the 
account is closed. 

JOSEPH GARFIELD 

Draw a line under the amounts, add both 
sides of the account. The account balances, 
therefore draw a double line tn sIkiw tliat the 
account is closed. 

GILBERT POLK 

This account shows a Credit balance of 
$S.OO. The Proprietor owes Gilbert Polk that 
amount [an. 1st, 1912. No rulint^ necessary. 

T. D. ANDERSON 

This account shows a Debit balance oi 
$100.00. T. D. Anderson owes the Proprietor 
that anmunt. X(i ruling- necessary. 

D. E. BAKER 

This account shows a Credit balance c f 
$2.00. The Pn.prietor owes D. !•-. I'.aker that 
ami lunt. 

NEW YORK MILLING CO. 

Draw a line under the anidunts, bi-ing both 
anidunts down below the line, place the smaller 
amiiunt under the larger, di-aw a line and sub- 
tract. The result shows a Debit balance of 
$7.S.00. The N. Y. Milling d. ,,wes the Pm- 
(irietor that amount Jan. 1st. I'n2. 

GALENA OIL & GAS CO. 

Draw a line under the amounts, add bcith 
sides of the account, place the smaller sum 
under the larger, draw a line and subtract, 
the result sho\vs a Credit balance of $40.00 
'l"he I'niprietor owes the (lalena ( )il (K: (ias 
Cm. that amount Jan. 1st. I'n2. 

J. C. BUELL 

It can be seen at a glance that this accmint 
])alances, therefore draw a (l()ul)le lini.- tn shii\\ 
that the account is closed. 

H. O. FRANKLIN 

Draw a line, add both sides of the account. 
The account lialances, therefore draw a double 
line to show that the accuunt is closed. 

INTEREST 

i )raw a line under the amounts, add both 
sides of the account, place the smaller sum 
under the larger, draw a line and subtract. 
The result shows a Debit balance of $17.42. 
This is a loss to the Proprietor. Draw a 
double line to show that the account is closed. 
DAVID LINCOLN 



(unt 



hows a Credit balance of 



$16.00. The Proprietor owes David Lincoln 
that amount Jan. 1st, 1912. Xo ruling neces- 
sary. 

OLIVER ARTHUR 

This account shows a Credit balance of 
$2.00. The Proprietor owes Oliver Arthur 
that amount. Xo ruling necessary. 

LOSS & GAIN 

This account is one into which all other ac- 
counts that exhibit a Loss or Gain are closed. 
This account is also Debited for all unexpected 
Losses and Credited for all Unexpected Gains. 
When any Speculative accotmt exhibits a 
Loss, this account is Debited for the balance. 
^^'hen a speculative account exhibits a Gain, 
this account is Credited for the balance. On 
Nov. 29th, this account was debited for $4.30 
and on Dec. 10th it was debited for $73.00 
In both of these cases the debits were made 
on account of Unexpected Losses. Iu|uii)- 
ment account exhibits a Gain of $838.00, there- 
fore this account is Credited for that amount. 
Discount account exhibits a Gain of $9.87, 
therefore this accotint is Credited for that 
amount. Fence account exhibits a Gain of 
S^.30, therefore this account is Credited for 
tl'iat amount. Interest Account exhibits a 
Loss of $17.42, therefore this account is 
Debited for that amount. This account is now- 
ready to Close, draw a line under the amiiunts. 
add both sides of the account, draw a double 
line to show that the account is closed. 

This account does not balance. In a pure- 
ly mercantile business Loss and Gain account 
will balance and will show the net loss or net 
gain. In keeping Farm Accounts this is dif- 
ferent. It does not show the Farmer's net 
loss or net gain because the farmer raises 
products and sells them during the year and 
they are never in\iiiced. The farmer's Net 
Gain or Net Loss is the difference between 
the amount of the Invoice taken when the 
books were opened, and the one taken when 
they are closed. In keeping Farm Accounts, 
Loss and Gain Account is simply an account 
under which a list of losses and gains are kept. 

PROPRIETOR'S ACCOUNT 

This account was debited for the amount 
of the Pro]irietor's debts, and credited for the 
amount of his investment Jan. 1st. 1911, when 
the books were opened. It was debited for 
the value of the Proprietor's property, and 
credited for the amount of his debts when the 
books w-ere closed Jan. 1st, 1912. Draw a 
line under the amounts. .Add both sides of 
the account. Place the smaller number under 
the larger, and subtract. The difference is 
.'slv342.00. This amount is the Proprietor's Net 
Gain. 

Draw a double line to show that the ac- 
count is closed. Then place the amount of 
the proprietor's debts on the del)it side, and 
the amount of his investment on the credit 
side. This account is now ojien for the fol- 
lowing year. 



Page Fifty 



Explanation of Monthly Sales Sheet 



We ha\e pros ided a Monthly Sales Sheet 
for the farmer who wishes to know the exact 
amount he receives from each of the \-arious 
kinds of products sold from the farm. 

By keeping a iMonthly Sales Sheet, the 
farmer has a record of the total amount re- 
ceived for each kind of products sold during 
each month, and the total amount received fm 
each kind of products during the year. It 
also shows the total amount of sales during 
each month for all products sold, and tlie 
total amiiunt of sales during the entire year. 

HOW TO KEEP A MONTHLY 
SALES SHEET 

At the expiration of each niimth consult 
The Farm Record Book or J(]urnal to ascer- 
tain the amount received for each kind of pro- 
ducts during that month. For instance, by 
referring to the Journal we find that $16.00 
^vas received for clover seed during January 
Place that amount in January Column oppo- 
site the word "clover seed", which is written 
on the first line. If you had sold clover seed 
several times during January all of the 
amounts received would have been added and 
the total amount put in January Column oj)- 
posite the name of the article sold "clover 



seed." Proceed in like manner with eacl; kind 
of products sold during the month. I'mcco! 
in the same wav at the end of each month 
during the year. 

Place the tmal amount received fir each 
kind of articles in the "total coknnn" at tlie 
right hand side of the page. This will show 
the total amount received for each kind of 
products for the entire \ear. .Add tlie anicunts 
in each of the Monthly Column and place 
the amounts at the l)ottom of the page in their 
respective columns, that will show t'le t tal 
amount of sales for each month. 

The sum of the amounts at the biaiim if 
the jiage should equal the sum of the amnunt-- 
■ ill Total Column at the right hand side c f the 
page. That amount is the grand total amount 
of all sales made during the year. This ami unl 
will not necessarily be identical to ihe amount 
in Income Column in the Journal, for in that 
column is kept the entire income, exceiit in- 
terest, discount and profits on speculati\-e ac- 
counts, while only the amount of sales of farm 
products are kept in the Monthly Sales Sheet. 

To ascertain the Farmer's Net Gain consult 
Proprietor's Account. 

This same form can be used for keeping an 
itemized account of expenses. 



Page Fifty-one 



'I\\L(.)J, 


c; 


; - 


o 
o 

: O 


■ O 
• ^ 
: O 

oc 


i O 

o 


O 

o 


o 
o 


o 


o 
o 

o 


O 

o 


O 

o 


8 


c 




c 




8 


c 

c 




H3HiMa3aa 






s 

O 
(^1 












g 




8 








8 


8 

^1 


HHUK'-JAOX 


o 
o 

o 
o 




























8 


o 
c 

o 


HHl]O.L3( ) 










o 
o 

ir. 














o 
o 




8 




o 
o 

o 

CM 


HH'JI\Ta.L,l}lS- 






o 
o 

1^1 


















I 








8 


isnonv 


























o 






o 
o 


A'l.lf 
























o 
o 

o 










Hxaf 






ir. 


8 

o 
o 












1 












8 


A\ IV 


















8 
8 














8 

o 
p 


'I1>I,I\- 














ir. 


c 
















8 

ir. 


HDnyn 












! 




















8 


A^VilHUHd 






s 


o 
o 

o 


p 




















- 




o 
o 

CM 


A>I\-!lXVl" 


o 


8 


























o 
o 




'S 




"? 












■^ 




(A 




c 




■f 




rt 




^ 

S 




u 
^ 




a. 












b/. 


C 

h 





Partnership. 

It is difficult to lay down rules which will ap- 
ply to all forms of partnership, however tht 
fundamental principles of bookkeeping are to 
debit persons when they receive values on ac- 
count and credit them when they furnish val- 
ues on account. Debit each partner for the 
amount of values he receives from the busi- 
ness and Credit each partner for the amount of 
values he puts into the btisiness. 

In case you rent a farm for cash, debit the 
landlord whenever you pay him cash for rent 
or when you furnish him values of any kind to 
apply on rent. If you pay him by bank check, 
credit the bank on which you issued the check. 
If you pay him by note, credit 1 Sills Payable 
account. If you pay him with farm products 
or labor, credit Income account. Credit the 
landlord for the amount of the rent when it is 
due. If it is all due at the end of the year, 
credit him at that time for the whole amount. 
If it is to be paid in installments, credit him 
when each installment is due, for the amount of 
the installment. 

In case the landlord and tenant own the live 
stock, implements, and farm products together, 
credit each partner with the amount of prop- 
erty he puts into the partnership and debit 
Equipment Account for the whole amount. 
Debit each partner with the amount of the 
partnership property he receives. 

There are two ways of renting for grain rent. 
The landlord and tenant either divide the pro- 
ducts or sell them and divide the money. If 
they divide the products before selling them, 
each party should keep a memorandum of the 
quantity that each person receives. If the pro- 
ducts are sold and the money divided, debit 
Cash and credit Income when the products are 
sold. Debit each party for the amount of the 
money he receives and credit Cash fur the 
whole amount. 



Miscellaneous Suggestions. 

In closing ledger accdunts, it will add tn the 
appearance of the work, to rule with red ink. 

If you wish to keep an individual stock 
record, that is, if you want an account which 
will show the expense and income of a certain 
COW', for instance ; open an account under the 
name or number of the cow just like you would 
any personal accotint. Debit the account for 
all of the expense she makes and credit the ac- 
count for all the income she produces. 

If you wish to know the rate of income on 
your investment, invoice your property and 
debts when the books are opened and when 
closed. See Proprietor's Account in ledger for 
further information. 

In case you do not care to know what your 
investment is or the rate of loss or gain on the 
net investment, it is not necessary to take ai^ 
inventory. Some farmers just want a record 
of their sales, income, and personal accounts. 

To find the rate of gain ; divide the net gain 



by 1% of the net investment. The rate of gain 
in the set of transactions which has been 
worked out, is 8%-|-. See illustration below : 
$16,582.00— investment. 
150.00— deljts. 
16,432.00 — net investment. 
1,342.00 — net gain, per Proprietor's Account 
in ledger. 
1% of $16,432.00=$164.32. 

$l,342.00-:-164.32=8%-l-, gain on net invest- 
ment. 



Transactions for Practice. 

When this text is used in the class room, 
the pupils should work out the following set 
of transactions after they thoroughly under- 
stand how to make the entries to the set which 
the author has used to teach the principles of 
bookkeeping. 

The dates to these transactions ha\e lieen 
omitted. They should be filled in by the stu- 
dent. 

On oldening mv books this day. my in\entor_\ 
is as folldws : 

Cash on hand $500.00 

Amount in First National Bank sub- 
ject to check 500.00 

John lones owes me on account 100.00 

I ha\e Bill Fra\'ers note, payable on 

demand, without interest 200.00 

My equipment is worth 800.00 

I owe F. D. Searles on account 400.00 

I have a note outstanding, payable to 
C. E. Blink, due one day from date 
without interest - 200.00 

Sold Charles Wilsim 10 bushels of corn fa 
$1.00 per Inishel, for cash. 

Paid S. J. Mike, for groceries, cash $2.00. 

Sold lohn Edison on account. 2 bushels of 
clover seed (a $5.00 per bushel. 

Bought of Hrown Clay Co., on account. 100 
rods of 4 inch tile (7i 25c per rod. 

John lones paid I'.rown Clav Co. for me nn 
account; $20.00. 

Sold 40 bushels of wheat to Sam Smoke, (ci 
$1.00 per bushel, for his check on Hood's Bank. 

Deposited Sam Smoke's check for $40.00 in 
First National Hank. sul)ject to check. 

Bill Fravel paid his note with cash, $200.00. 

Deposited cash in Mrst National Bank, sub- 
ject to check, $100.00. 

Paid $1.00 cash to Daily News for suliscrip- 
tion. 

Bought of Jacob Bale, 100 rods of fence (a 
40c per rod to be used on my farm ; gave him 
my check on First National Bank. 

Paid Lida Mills cash fnr doing housework. 
5 days (a $1.00 per day. 

Page Fifty-three 



Paid cash for 10 -allons of Lime-Sulfur so- 
lution (a, 20c per gallon. 

Gave the Bell Telephone Co. my check on 
First National Bank for $3.00 to pay telephone 
rent for three months. 

H. M. Kile shod my horses, on accduni. 

J. C. Smith shore 100 sheep for me (a 10c. 
per head; I gave him a calf for his pay.' 

1 put $2.00 in the church collection to aiiplv 
on janitor's salary. 

Bought 100 slieep of John Love fR $3.00 per 
head; gave him my note due in oneVear l^ear- 
interest at the rate of 6% per annum.' 

Bought 20 hogs of Sam Flea (Fv $4.00 each ■ 
ga\-e hnn my order on John Jones^for $80.00. 
I lost $20.00 cash, out of my pocket. 
I found $50.00 cash, on the street. 

RESULT OF ABOVE TRANSACTIONS 

On closing my books I hnd mv business in 
the following condition : 

Cash on hand <t 6^8 00 

.Amount in First National Bank sub- ' 

ject to check 597.00- 

I own Equipment worth (per inven- 

, !"'"y> ■. 1,500.00 

jolin ttdison owes me 10 00 

I owe F. D. Searles 400 qo 

1 owe H. M. Kile [''_" 2 00 

I owe Brown Clay Co 5.00 

T have notes outstanding amounting 



tr 



500.00 



John Jones' account balances. 

Bills Receivable account balances. 

Equipment Account shows a credit balance 
of $700.00. 

Loss &' Gain account was delated for $20.00 
unexpected loss. It was credited for $^0 00 
unexpected gain, it was also credited bv Equip- 
ment account for $700.00. 

Proprietor's Net Loss $328.00 

My expense was ' 47200 

i\T.v income was 7000 

Paid for labor 1500 

The teacher may give the pupils more trans- 
actions if he thinks it is necessary. 



Page Fifty-four 



Questions for Review. 



1. ^^'hat is bookkeeping? 

2. What is single entry bookkeeping? 
o. What is double entry bookkeeping? 

4. A\'hat is a bookkeeper? 

5. Of what does the record of a transac- 
tion consist? 

6. \\'liat is keeping farm accounts? 

7. What is a farm record book? 

8. ^^"hat is a journal? 

9. \\'hat is a ledger? 

10. AMiat is a business transaction? 

11. What is an account? 

12. How many sides has an account? 
Name them. 

13. How do you debit an account? 

14. How do you credit an account? 
13. \Miat is cash? 

16. W4ien should Cash account be debited? 
\\'hen credited? 

17. ^^'hat is interest? 

15. When should interest account be deliit- 
ed? When credited? 

19. ^^'hat is a bank account? 

20. What is freight? 

21. A\'hat is drayage? 

22. \\'hat is discount? 

23. What is a note? 

24. What is a negotiable note? Non-nego- 
tial^le ncite? 

2?. ^\'hat is a contract? 

26. \\'hat is a bank deposit? 

27. ^^'hat is a certificate of dep()sit? 
2><. \\hat is a time certificate of deposit? 
2'). What is insurance? 

30. What is fire insurance? Life insur- 
ance ? 

31. What is a contract? 

?i2. What do we mean liy shares of stock? 

33. \\ hat is a dividend 

34. What is an inventory? 
33. What is a rebate? 

36. ^^'hat is a draft? 

i7 . How many persons are considered in a 
draft? Name them? 

38. Who is the drawer ? Drawee? Payee? 

3'). Name the different kind of drafts. 

40. What is a sight draft? Time draft? 

41. \Miat is an order? 



42. What is the difference between a draft 
and an order? 

43. ^\'hat is a post office money order? 

44. ^^4^at is an express money order? 

43. What dn you understand by buying on 
account? Selling on account? 

46. ^\'hat do \\-e mean bv Sundry I'ei-sonal 
accounts ? 

47. \Vhat accounts are kept in Sundry Per- 
sonal Accounts column? 

48. What is Expense account? 

49. W'hat is Pal)or account? 

30. What is Income account? 

31. W^iat is Cash account? 

32. \\'hat is a Proprietor's account? 

33. When is I'roprietor's account debited? 
When credited? 

34. \\'hat is a Personal account ? 

33. \\'hen is a Personal account debited? 
A\'hen credited? 

36. \\''liat is Real Estate account? 

37. ^^'hen is a Realestate account debited? 
When credited? 

38. A\'hat is a Pank account? 

39. AVhen is a l]ank account debited? 
When credited? 

60. What is an Interest account? 

61. When is Interest account del)ited? 
When credited? 

62. \\'hat is Discount account? 

63. When is Discount account debited? 
\\'hen credited? 

64. What is Loss & Gain account ? 

63. When is Loss &: Cain account debited? 
When credited? 

66. ^^'hat is Bills Receivable account? 

67. A\'hen is Rills Receivable account deb- 
ited? \\'hen credited? 

68. What is Bills Payable account? 

69. When is Bills Paya1>le account debited? 
A\4ien credited? 

70. \Miat is Equipment account? 

71. When is Equipment account deliited? 
When credited? 

72. A\'hat is merchandise? 

73. A\'hat do we mean by closing a ledger? 

74. What is a trial balance? 

73. How do we take a trial balance? 

76. Name tlie columns in this journal. 

77. Name the columns in this ledger. 

78. What is a monthly sales sheet? 



Page Fifty-five 



^ 



1 




■i h 



IL 



ji 

il 



• 


' 






' 




1 

1 










— 






- 






1 






1 -1 




1 


! , ^ ^ ^ ' ' 








- 


! r 




': { : 


A 






: ' ■ ' ' 




1 






l. 








i 

i 


1 








- 











M 



4=4 



i 



1 



















i 








— . . . — 






1 






— 






: i ; ' , ' 


















1 










: '^ 1 : 










1 


















1 








i 
1 






























i! 


I 






































' i 






1 










1 






,1 






J 












l l I 



^^ 




I ' I 



I I tl 



I I 



LIBRARY OF CONGRESS 



DDDEt,715a3D f 



